Oil futures contracts closed close to stability on Tuesday (1st) in a session prior to the meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+). From the analysts’ perspective, the market should continue with an uptrend, unless some surprise occurs in the decision.
Another element observed in the scenario was the release of Exxon Mobil’s balance sheet, which pointed to an increase in investments in production, in addition to recording significant profits in the quarter.
On the New York Mercantile Exchange (Nymex), the barrel of WTI oil scheduled for delivery in March rose 0.06% (US$ 0.05), to US$ 88.20, while Brent oil for the following month fell by 0.11% ($0.10) to $89.16 on the Intercontinental Exchange (ICE).
Commerzbank assesses that the prospects for the commodity follow for price advances. Tomorrow, OPEC+ must maintain its agreement to increase production by 400,000 barrels per day (bpd).
But the German bank explains that the cartel has not been able to deliver the right expansion. In the opinion of Edward Moya, an analyst at Oanda, today fears of a surprise from OPEC+ left many energy traders tied to profits.
As many members of the organization are struggling to reach their quotas, oil seems on the verge of rising further, he assesses, noting that fears of supply interruptions will remain high due to the intense winter that hits the north and the geopolitical risks abroad.
For Moya, the scenario should follow as long as “the Saudis are not surprised at the OPEC+ meeting and make an effort to increase production further”. Riyadh is seeing US drillers starting to invest in new wells and this could trigger some fears about market share, he reckons.
Exxon Mobil indicated in its balance sheet that the oil giant is ready to significantly increase its investment in new wells, it points out. Your drilling expenses are expected to increase by up to 45%.
Capital Economics recalls that some authorities in the Gulf countries spoke openly about the need to prevent oil prices from rising too much for fear of demand destruction.
Omani’s oil minister spoke last month about how OPEC+ didn’t want oil prices to keep approaching $100, as they did.
Source: CNN Brasil
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