Over the weekend the OPEC+ meeting was delayed until later this week. originally the meeting was supposed to go ahead on Monday (06/04) to discuss cuts in order to try stabilise the price. For this reason we saw a rally towards the end of the week. However because the meeting has been delayed, I believe we are going to see the following possible scenario;
- Price will open with a gap down
- Price will rally up on hope of production cuts
- Cuts will be announced, price will rally more, then drop.
- No cuts will be announced and price will drop
Either way, we are going to see a drop again in oil prices. Even if cuts are announced, this is currently a market with NO demand for oil . It is too late for OPEC to make any difference to the price no matter how hard it tries.