Crude Holds Onto Gains, Waiting For OPEC Meeting

Oil prices were little changed on Tuesday holding onto the previous two days gains as it waits for the result from the weekend’s OPEC+ meeting. Saudi Arabia and Russia are widely expected to extend their voluntary output cuts into 2024 but the market is likely to move if the rest of the group announces further reductions. The USD was flat with little reaction to the Fed minutes.

• Brent is 0.2% higher at $82.48/bbl, close to the intraday high of $82.54. It fell to a low of $81.43 during European trading but then trended higher from there. Resistance is at $83.97, November 14 high, and support is at $76.60, November 8 low.
• WTI closed flat at $77.81/bbl after a low of $76.92. Resistance is at $78.81, 20-day EMA, and support at $72.37, November 16 low.
• Supply remains in focus with the US producing more and Iran’s oil minister saying that his country’s output is expected to rise 0.2mbd to 3.6mbd in March 2024 with most of it heading to China.
• Bloomberg reported that there was a 9.05mn barrel stock build of crude, according to people familiar with the API data. But gasoline inventories fell 1.8mn and distillate -3.5mn.