In the end of September 2016 OPEC agreed to limit oil production. But beyond the declaration any specific measures have been postponed until the next meeting which was scheduled for two months later.

OPEC meeting

OPEC meeting scheduled for November 30th is getting close. During the meeting some specific arrangements for the freezing of oil production in order to increase its prices should be made. Meanwhile speech of representative of largest oil producer (Saudi Arabia) indicate that the meeting of OPEC countries may fail.

Saudi Arabia last Friday refused to participate in Monday’s meeting of oil producers from outside OPEC as an argument stating the need for a prior agreement within OPEC. Then Saudi oil minister announced that he expects stabilization of oil prices in 2017 as a result of rebuilding demand, especially from the US. Minister added that this will be done without any intervention from OPEC. This lack of determination on the part of the main oil producer has caused sharp declines in oil prices.

Oil prices

Over the next three days we should expect increased volatility on the charts of WTI and Crude. Each message on progress in the negotiations or a message about the lack of progress will cause rapid, dynamic movement of prices.

WTI crude oil fell on Monday to the 2-week low. Declines stopped at support at 45.50 and after eventual break of this level – bears will open way way towards the 43.50. Technically moving downward was supported by breaking the lower limit of the triangle formation (shown in the chart below for H1). This took place on Friday and range of declines of that breaking out was completed today. If there is now an effective rebound from the support at 45.50 the next targets for bulls are at levels of 46.80, 48.30. Key levels, which should not be broken until the final decision by OPEC is support at 43.50 and resistance at 51.50 (these levels are indicated on the D1 chart).