The sources are saying that OPEC+ is leaning towards resuming oil output hikes starting from April. However, the bloc has not yet made a firm decision on the matter and that talks will continue ahead of their 1 March meeting.
The headline is enough to bring about a dip in oil prices, with WTI crude falling from around $63.00 to near $62.30 currently. That’s seeing price fall by 0.9% on the day and coming back towards a key test of the 200-day moving average:
WTI crude oil daily chart
That marks a key test on the charts for oil prices, after having to deal with constant US-Iran geopolitical uncertainty in recent weeks. The rebound in late January is still largely sustained, but only by the key technical level highlighted above.
A break back below the 200-day moving average frees up room for oil to drop back towards the $60 mark potentially.
While OPEC+ is coming back into the volatility equation for the oil market, do keep an eye out still for US-Iran headlines in the meantime.
