Oil off the lows while OPEC+ is deafeningly silent ahead of meeting

• WTI Oil off the lows and steady near $75 this Tuesday. 
• The US Dollar is trading flat and is holding its head above water to try and halt the recent downturn. 
• Oil could sink if API numbers reveal another build in US stockpiles. 

Oil prices are off the lows this Tuesday and are putting this week’s performance in the green despite some more bearish undertone in recent headlines. The Gaza ceasefire has been prolonged by two days for more prisoner exchanges and humanitarian aid. Markets meanwhile have adjusted their positioning on the internal divisions within OPEC+, with tension now building toward Thursday’s meeting and a possible reaction that could push crude higher. 

The US Dollar (USD) is off its low levels for this month as well, with US traders having resumed their normal work schedule. The Greenback is trying to erase Monday’s losses and is mildly higher in a mixed picture this Tuesday. With no less than five Federal Reserve speakers to speak, traders will be on the lookout for any guidance on the next step from the Federal Reserve (Fed) in December.   

Crude Oil (WTI) trades at $75.64 per barrel and Brent Oil trades at $80.56 per barrel at the time of writing. 

Oil news and market movers: Hawkeye on OPEC+

• A lack of individual comments from OPEC+ members ahead of Thursday makes tensions build for traders in terms of prepositioning. 
• Meanwhile OPEC did come out with a statement, a defence of the Oil-and-Gas industry ahead of the big climate convention COP28. The statement also  pushes back against the International Energy Agency (IEA) and highlights the scattered debate over how best to tackle global warming.
• Saudi Arabia continues demanding all OPEC members reduce their production quotas in a joint effort to shore up the supply side. 
• As per normal, on Tuesday evening near 21:30 GMT, the American Petroleum Institute is due to release its latest stockpile figures. Previous data showed a build of 9.047 million barrels, with projections now of 2 million drawdown; possibly ending the supply build up throughout November. 

Oil Technical Analysis: November stockpile buildup coming to an end

Oil prices may have reached the end of the line for now in their downturn. Price pressure is building ahead of the OPEC+ decision on Thursday. This evening the API stockpile numbers are expected to show a drawdown in stockpiles for the first time in November, which could mean that the US production has reached its limits for now and will see demand soaring again on the global Oil market, while OPEC+ seeks to shore up the supply.  

On the upside, $80.00 is the resistance to watch out for. Should crude be able to jump above that again, look for $84.00 (purple line) as the next level to see some selling pressure or profit taking. Should Oil prices be able to consolidate above there, the topside for this fall near $93.00 could come back into play.

On the downside, traders are seeing a soft floor forming near $74.00. This level is acting as the last line of defence before entering $70.00 and lower. Watch out for $67.00 with that triple bottom from June as the next support level to trade at. 

US WTI Crude Oil: Daily Chart