The volatility remained high in the global oil prices amid the Thanksgiving holiday in the US. Brent crude oil price slid for the second straight day due to rising US inventories. This shows a shift of the market sentiment after the recently announced delay in the OPEC+ meeting.
Brent oil price started the week with a 1.76% surge on Monday which was extended by another 0.55% gain on Tuesday. However, the surprise delay in the OPEC+ meeting which was meant to be held on 26 November, triggered a sell-off in the futures contracts.
The bearish price action also seems to be driven by a recently reported increase of 8.7 million barrels in the US inventories. This surge in the US stockpile shows that the demand for black gold remains weak in the biggest global economy.
Nevertheless, the falling Brent crude prices are pressuring OPEC+ countries to agree on significant production cuts in its meeting which will now be held on 30 Nov instead of the previously announced 26 Nov.
The key level to watch will be the 200 MA which currently lies at $82.2 on the daily chart. A breakout above this moving average may cause a bullish trend reversal.
This post was last modified on Nov 23, 2023, 20:20 GMT 20:20