Bullish Sign in Oil, As It Remains Bullish Despite the OPEC+ Meeting - Forex News by FX Leaders
OPEC increasing production, but Oil is bullish again

Bullish Sign in Oil, As It Remains Bullish Despite the OPEC+ Meeting

Posted Monday, July 5, 2021 by
Skerdian Meta • 1 min read

Crude Oil has been really bullish for more than a year, despite everything that has been happening during this time. The coronavirus and the lockdowns/restrictions have not bothered it, since the global economy is basically booming across many sectors, which is keeping the demand high for energy and the trend bullish for Oil.

OPEC+ meeting which is supposed to be held today, is being delayed. OPEC Journalist Zandi commetted on the delay a while ago:

OPEC+ Journalist Zandi

Zandi

MAs are keeping crude Oil bullish

Nonetheless, crude Oil bulls aren’t too worried about the possible hike in production, which UAE is pushing for. yes, OPEC+ is blocking a deal/proposal for a 400k bpd increase in production output/month starting from August, but they aren’t doing so because they are against selling more Oil, instead it is more of a bargaining tool for them.

So, once this dispute gets settled and they decide to hike production, crude Oil can keep focusing on the improving global macro situation. The global economy is expected to improve further in H2, so the demand conditions are to keep more robust in the coming months. Hence the bullish momentum in crude Oil.
WTI Oil Live Chart
 

WTI
Anyway, even if we see a retreat down after the decision, it would be a good opportunity to go long on US WTI Oil, probably at $70 which is a major level. That would be a good time for buyers who have gone long from way down to do some profit taking, which might accelerate the downside for some time, but we will try to pick a bottom when that happens, so follow our forex signals page for live signals on Oil and other commodities.
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