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Oil softer on OPEC date uncertainty and demand concerns

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Crude prices traded lower after the Pentagon committed more troops to the Middle East and as OPEC and allies slowly make progress on scheduling their next meeting to discuss production cuts.  The decision by the US to send more troops could be a sign that the US may try to assure safe travels by oil tankers in the region following multiple attacks over the past several weeks.  Further evidence was also released adding to the US speculation that Iran was behind the attacks of this week’s attacks in the Gulf of Oman.

OPEC and friends have had a lot of difficulty on when to reschedule the 176th OPEC meeting, which was expected on June 25th.  It appears that Iran is offering meeting between July 10th and 12th, possible progress we could see an agreement on a date being reached since Iran is no longer insisting on keeping the original date.  The decision needs to be unanimous by OPEC and we should find out shortly if the rest of the cartel agrees.

Even if we see OPEC and allies agree on extending production cuts, global demand will need a boost for oil prices to rise higher.  Trade progress at the G20 summit in Japan is mandatory for the demand side argument for stronger crude prices.

Oil remains in bear market territory and key support remains the $50 a barrel level for WTI.

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
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