Jump to content

Watching oil prices as OPEC says demand to exceed supply in 2023


MongiIG

Recommended Posts

Brent is back up over $80 a barrel as OPEC points to growing demand in 2023. In its monthly statement, the oil cartel said that as China comes back online it fully expects a rebound in pricing.

 Jeremy Naylor | Writer, London | Publication date: Wednesday 14 December 2022

Oil prices jump

Oil prices have posted their single biggest daily gains in over a month as OPEC said it expected to see robust global oil demand growth in 2023.

The organisation counts on a potential economic upside coming through from a relaxation of China's Zero-Covid policies. It estimates that world oil demand will rise by 2.25 million barrels per day in 2023 around better off than in 2022.

OPEC's monthly report also showed that production fell in November after OPEC+ agreed to a two million barrel per day reduction in its output target. Output in November fell by 744,000 barrels of oil a day.

All this comes as US crude inventories rose for the first time in four weeks last week, by about 7.8 million barrels. Analysts expected an average of a 3.6 million barrel drawdown.

Brent chart

This API inventories indicates a surplus of oil and has a depressive effect on oil prices. Despite this, we've seen oil now up for 1/4 day in a row. That API number, you can clearly see pull the oil price down back from the highs of over $81 a barrel on brent, closing out yesterday's session at pretty much where we are at the moment, just over $80 a barrel.

But this move up is really on expectations that OPEC is largely bullish on the outlook for oil next year.

US crude

Just a quick update on where we are in terms of the move at the moment, on US crude - the same sort of price action taking us back up above this low point that we had here back on the 28th of November. Currently trading at 7545.

Upside on oil is widely expected to continue going to the back end of the year if markets do believe 2023 forecasts from OPEC.

If you are long on this, your stock goes below recent price action to give you some sort of protection should there be a snap back.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,599
    • Total Posts
      96,961
    • Total Members
      44,168
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Richierich
    Joined 03/12/23 12:33
  • Posts

    • Trade statistics of the 'Triangle 8th' system as of 12/03/2023 Gain: 102.00% Profit: 781.52 USD Funds: 1,400.18 USD Balance: 1,781.52 USD Beginning deposit: 1,000.00 USD Withdrawals: 0.00 USD Top-ups: 0.00 USD
    • Name of stock - Vox Royalty   Name of Stock Exchange - NASDAQ   Leverage or Share dealing - Leverage   Ticker - VOXR   Country of the stock - Usa   Market Cap - 100M
    • It is a best practice to buy dip and sell high but this strategy mostly doesn’t go as planned because you can’t predict the final bottom. Some traders BTD anticipating a potential pullback which mostly doesn’t happen and this force some into panic selling. DYOR is mostly advisable but some people fail to know which analysis they should focus more on. When deciding to hold a token for a long-term FA is very important and its cardinal point should be thoroughly scrutinized before making such a decision. These points include; Whitepaper, Road map, and Usecase. These points have a huge impact on deciding how long to hold a project and also booast your confidence in the project's bullish potential.  The first principle in this industry is “invest what you can afford to lose" though many neglect this principle as such when a project is going through a price correction they panic sell and sell at a huge lost. Most normal regret their decision later when they see the project back on track. Once you adhere to the first principle you hardly fall victim to panic sales. Note that it is mostly not advisable to hold meme tokens una less you are convinced because meme goes with the hype and finds it hard to retest its ATH once the hype is over.  Anyway what are your trading strategy and principles you adhere to most?
×
×
  • Create New...
us