Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Oil markets grapple with OPEC discord and production quota delays

EditorPollock Mondal
Published 24/11/2023, 05:44 pm
© Reuters

The energy sector is facing heightened uncertainty as disagreements among OPEC members over production quotas have led to a postponed meeting, stirring unease among oil traders. The internal conflict within the Organization of the Petroleum Exporting Countries (OPEC) has been a key factor in the recent struggle of WTI Crude Oil prices to surpass the critical technical resistance level of the 200-day Simple Moving Average (SMA), which currently lies in the $78-$74 range.

Saudi Arabia has been vocal in its push for widespread production cuts across OPEC nations to stabilize prices, which they argue are being undermined by increased output from non-OPEC countries. This position is at odds with some African OPEC members, who are resisting further reductions in production quotas. The discord has not only delayed the group's meeting but has also impacted energy risk sentiment, leaving barrel traders on edge.

Adding to investor concerns, OPEC's decision to push their pivotal quota discussion meeting four days past the initially scheduled date of November 30th has further dampened confidence in the market. Technical analysis of WTI Crude Oil suggests a continuation of its recent weakness. Despite a modest rebound from last week's drop to $72.38, an eighteen-week low, prices remain nearly 19% below the high seen in September. Market watchers attribute this vulnerability to apprehensions that non-OPEC member nations might drive prices lower with their increased production levels.

Today's market conditions reflect a complex interplay of geopolitical factors and supply dynamics, where OPEC's internal divisions and decisions by non-member states could significantly shape global energy prices in the coming weeks.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.