OPEC On Watch

Oil traders will be paying close attention to today’s OPEC+ meeting. Following recent headlines around a potential production cut, OPEC sources have reportedly leaked that the group is said to be considering weighing up whether to keep current production quotas in place for October or cutting production slightly.

Last month we heard from Saudi Arabia, the group’s de-facto leader- that a production cut might well be necessary to stop oil prices plunging further, following the reversal from highs. However, OPEC ally Russia is said to be firmly against the move and is pushing for the current quotas to be rolled over for next month. If a cut is announced, this will no doubt help underpin prices in the near-term. However, given the broader demand fears, if a current quotas are extended this will likely weigh on oil prices near-term as markets continue to focus on the bigger macro backdrop.

Technical Views

Crude Oil

For now, crude prices continue to hold above the current 85.53 support, trading a range between that level and 95.93. Momentum studies are mostly flat, reflecting the loss of momentum recently. In terms of levels to watch, should we break lower the 79.21 level is the next big support area while to the topside, 103.80 is the next objective/hurdle for bulls.