Crude Oil Forecast: Focus On OPEC Meeting

Supply Cut rumours helping Crude Oil’s recovery. -See Attached Forecast.-

Another Supply Cut signal came from the Russian side. Russia’s Energy Minister Alexander Novak was on the wires last minutes, via Reuters, commenting on the OPEC output policy.

Key Points:

Need to make a balanced decision on OPEC production.

There has been no decision yet.

Russia is planning to sign an agreement on oil output with OPEC.

But this will be discussed in next month’s meeting.

Technically: The overall picture is still bearish. Crude Oil printed a flag pattern. It is trading below EMA 50 on H4 Chart which resides at 58.20. We need to see the price breaking above EMA 50 in order to talk about a midterm trend reversal. However, it is likely to test EMA 50 at 58.20.

Crude Oil prices are likely to trade sideways until the OPEC + meeting of December.

A bearish breakout of the flag pattern would lead to prices towards 52.00 – 50.00 U