OPEC to meet after G20
OPEC’s website this morning confirmed that it’s meeting will take place a few days later than initially planned, with it now seemingly penned in for 1 and 2 July, the latter of which will include allies including Russia.
The decision to delay the meeting may well relate to the G20 and talks taking place between the US and China, with the trade war seen as the greatest threat to the global economy at the moment and one that has led to downward revisions to oil demand growth, weighing on prices.
With this in mind, the next couple of weeks could be very volatile for oil prices, with inventory data adding another cause for concern for producers, given the recent inventory numbers. API reported a slight reduction on Tuesday – EIA is expected to confirm this later on today – which may alleviate some of the downward pressure in the near-term.
Brent Daily Chart
As far as price in concerned, it remains subdued, with $60 coming under repeated pressure this month. The inability to top previous highs on rallies won’t be comforting for bulls, although with so many different factors driving price right now, unpredictable events could change the look of the charts. Just look at the spike last week following the tankers attack in the Gulf of Oman.
Should $60 break, it could be a bearish signal in the near-term, with $58 being the next notable level below and $55 below that. A break back above $64.70 could mark a reversal in the trend, resulting in a double bottom and giving a possible price projection – based on its size – of around $69. Of course, there’s never a guarantee with these and they’re not meant to be precise.
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