OPEC Failed, Oil Gained!

UAE’s position has not changed!

By: Ahura Chalki

Market analyst – IFC Markets

According to unofficial resources, Bloomberg and Reuters reported that OPEC and non-OPEC producers, known as OPEC+, have decided to postpone the meeting after three days of unsuccessful negotiations, leaving the output levels unchanged.

The OPEC+ Joint Ministerial Monitoring Committee (JMMC) co-chairs have required more time to discuss the United Arab Emirates (UAE) position, Reuters added.

“UAE’s position remains unchanged,” sources said. “UAE supports oil increase but no extension without reviewing its baseline.”

Tensions between the United Arab Emirates and Saudi Arabia were not what market participants could predict before the meeting; however, they finally failed to find a common solution after several days of talks. 

This unagreement distorts this organization, and if they can not agree later, previous disputes can flare up again. It can be bullish for the Oil market in the short term, but increasing differences destroy order, which in the longer term can be damaging for the Oil market. 

After this report, WTI could regain its multi-year high above $75 and broke the previous record. 

Technical indicators still supporting the current uptrend. $74 is the key support currently, and any numbers above this level can put the earlier Goldman Sachs estimate at $80 in the spotlight.  

WTI


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