On Tuesday, the US crude oil benchmark, Western Texas Intermediate (WTI), is trading at approximately $77.50. WTI prices continue to rise as there is anticipation that OPEC+ (The Organization of the Petroleum Exporting Countries) will announce additional supply cuts after their meeting. Saudi Arabia, the largest oil exporter globally, plans to extend production cuts by 1 million barrels daily into the following year.
OPEC+ is considering further cuts in response to decreasing prices and heightened tensions over the Israel-Hamas conflict. Agreement on additional cuts could positively impact WTI prices in the short term. Oil traders closely watch Tuesday’s Federal Open Market Committee (FOMC) Meeting Minutes for potential insights into future policy rate directions. Furthermore, releasing US crude oil inventory data, such as API Weekly Crude Oil Stock on Tuesday and EIA Crude Oil Stocks Change on Wednesday (week ending November 17), adds to market influence. The outcomes of these events may notably affect the USD-denominated WTI price, prompting oil traders to identify trading opportunities based on the revealed data.
Despite the potential for OPEC and its allies, including Saudi Arabia and Russia, to implement more extensive supply cuts, concerns regarding a decelerating global economy take precedence. The US leading indicator for October, reported by the Conference Board on Monday, showed a 0.8% MoM decline following a 0.7% drop in September. The report indicated that elevated inflation, increased interest rates, and diminishing consumer spending could lead to a brief recession in the US, potentially limiting the upward movement of WTI prices.