Crude Oil makes its way up to $70 again for a third time this week

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Traders are pre-hedging for a possible suprise comments from OPEC+ as of December 1st. OPEC+ ministers are joining on December 1st in person, before Output Policy Meeting scheduled on Thursday. The US Dollar Index bounces off the lows with markets concerned on French budget discussions.

Crude Oil is rallying into the US trading session with near 1% gains as nervousness picks up towards OPEC+ and its upcoming events. However, a weekly loss nearly looks inevitable to avoid, while traders await the outcome of the upcoming Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting on its output policy, which has been delayed to next Thursday. Markets have already priced in a delay in production normalization to the first quarter of 2025.

The US Dollar Index (DXY), which measures the performance of the US Dollar (USD) against a basket of currencies, eases further on Friday with only a handful of US market participants returning to markets after Thanksgiving Thursday. The weakening of the US Dollar comes with the narrowing of the yield gap between the US and Europe due to French yields spiking higher on political uncertainty. French Prime Minister Michel Barnier has until Monday to propose a severely reduced budget, or the far-right National Rally party of Marine Le Pen threatens to topple the French government if demands are unmet.

At the time of writing, Crude Oil (WTI) trades at $69.40 and Brent Crude at $73.13

Oil news and market movers: Headline risk as of Sunday from OPEC+

Saudi Aramco may reduce the official selling price of Arab Light crude by $0.70 per barrel for January sales to Asia, according to the median estimate from Bloomberg. Several OPEC+ ministers will attend the meeting of the Gulf Cooperation Council in Kuwait on Sunday and discuss in person before the Output Policy Meeting scheduled for Thursday. The Crude Oil market continues to face uncertainties around weather, demand, and geopolitical developments, said Charu Chanana, chief investment strategist for Saxo Markets Pte in Singapore, Bloomberg reported.

Oil Technical Analysis: Some hedging ahead of OPEC+

Crude Oil prices are still dragging, facing selling pressure and the risk of more downsides, with a constant reminder in articles and media outlets that there is a supply glut still at hand in the Oil landscape. Markets are already pricing in a simple delay of … Read More