Oil Prices Stable, Market Awaits US Stocks and OPEC+ Decision
World oil prices moved steadily above $65 per barrel on Wednesday (2/7), as market players began to shift their focus from geopolitical tensions to economic data and global supply. West Texas Intermediate (WTI) rose slightly, but failed to stay above its 100-day moving average at $65.67. Trading volumes tend to be low because the US national holiday next Friday shortens the trading week.
The main focus of the market is currently on two important things: official oil stock data from the US government to be released on Wednesday, and the OPEC+ production decision at the end of the week. According to a report by the American Petroleum Institute, oil reserves in Cushing — the main delivery point for WTI — fell by 1.4 million barrels last week. If confirmed by government data, this would be the biggest stock decline since January, and could push prices up because it indicates a tightening of supply.
However, there are new concerns emerging ahead of the OPEC+ meeting on Sunday. Many analysts predict that the organization led by Saudi Arabia and Russia will decide to increase production quotas again. If true, the potential for oversupply in the second half of this year could again cast a shadow over the market. However, most market players have anticipated this move, so the market reaction is not expected to be too extreme.
According to Goldman Sachs analysts, oil market volatility has now returned to normal levels after previously soaring due to the conflict in the Middle East. With geopolitical tensions easing and focus shifting to fundamental aspects such as supplies and production policies, oil prices are likely to move in a narrow range until the official OPEC+ decision is announced.
Source: (ayu-newsmaker)
