Prices Rise, OPEC Uncertainty Driving Volatility

Oil prices rose around 2% on Tuesday supported by lower US yields, dollar and the possibility that OPEC will reduce production quotas further at its Thursday meeting given recent lower prices. The USD index fell 0.4% after dovish comments from the Fed’s Waller.

• WTI is up 2.1% to $76.46/bbl after touching $77 during the NY session. It fell to an intraday low of $74.64 during European trading. But the trend outlook remains bearish with attention on support at $72.37/bbl, November 16 low. Initial resistance is at $77.94, 20-day EMA.
• Brent is 2% higher at $81.58/bbl off the intraday high of $82.16. It fell below $80 briefly making a low of $79.80. Technicals suggest that recent gains are corrective and moving average studies are bearish. Initial support is at $76.60 and resistance at $83.97.
• OPEC+ delayed its meeting to Thursday but four sources cited by Reuters suggested that it could be pushed out further as an agreement on quotas, especially for Nigeria/Angola, is still elusive. The meeting remains the focus of the week.
• Kazakhstan’s output may have been impacted by recent storms. The main producer said that its production was possibly halved yesterday as a result.