Brent falls to $81.3 despite the postponement of the OPEC+ meeting

Saudi Arabia may continue production cuts until 2024

Oil pump jacks extracting crude oil at sunset
Oil pump jacks extracting crude oil at sunset ©, Zbynek Burival

Brent oil prices have slightly decreased and are currently trading around $81.3 per barrel. This price decrease continues despite the postponement of the OPEC+ ministers' meeting, which caused some concern in the market.

Despite the meeting's postponement, analysts believe it will not significantly influence the outcome. Saudi Arabia is expected to continue limiting its oil production, and other countries are also likely to adhere to their quotas until the end of the year.

Experts from UBS suggest that the cartel will agree to continue restrictions on oil production, though oil prices may remain volatile in the near term.

Prices for January Brent crude futures on the London ICE Futures exchange have slightly fallen compared to the previous session, and prices for WTI crude futures for January on the NYMEX exchange have also decreased. This decline occurred on a day when the U.S. celebrated Thanksgiving, and major trading sessions were not held.

Market Analysis

Market analysis shows that Brent oil prices are trying to stabilize. Experts note that a key point for further price decline will be breaking through the $81 per barrel level, which could signal a move towards a target of $77.44.

An important factor is keeping the price below $82.10. If the price exceeds this level, it could approach the next significant resistance at $83.87 before starting to fall again.

The trading range for today is expected between support levels at $80 and resistance at $82.80. The overall trend for today is anticipated to be downward, or bearish.

Market Analysts' Forecasts

Strategists from ANZ Bank believe that oil prices could stabilize around $80 per barrel. They point out that Saudi Arabia may extend its production cuts until 2024 to maintain high prices. This decision is linked to the easing tension in the oil market, as increased supply from non-OPEC countries compensates for strong demand.

If Saudi Arabia stops reducing production, it could lead to market oversaturation and a fall in prices below $70 per barrel. On the other hand, potential supply disruptions in the Middle East could cause prices to rise above $100 per barrel.

Overall, experts believe that Saudi Arabia is likely to maintain restrictions on oil production to keep prices above $80 per barrel.

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