WTI recovers on Tuesday at $ 76.00 while awaiting the outcome of the OPEC + meeting

• WTI is trading modestly higher Tuesday at $ 76.00 and has rallied after Monday’s turmoil.
• The main driver of the oil market on Tuesday will be the OPEC + meeting, which starts at 1:00 PM GMT.

While Monday’s session was hectic, perhaps compounded at the time by poor liquidity conditions with many Asia Pacific and London markets closed for the holidays, oil markets They appear to have regained their composure on Tuesday. Risk appetite related to Omicron optimism that has boosted US yields and pushed major US and European indices to record highs this week appear to be giving oil markets modest support. , with the futures of the WTI of the first month rising approximately 20 cents more on the day and trading comfortable at $ 76.00, above Monday’s lows at $ 74.50.

The UK’s vaccine minister said on Monday that people currently hospitalized with Covid-19 generally show less severe symptoms than before. The French finance minister also expressed confidence Tuesday that despite the rise in Omicron infections, the government’s economic outlook for 2022 remains intact.

OPEC + is the main focus of the oil market on Tuesday, with the cartel meeting to decide on future production policy. All indications from internal sources suggest that the group will agree to continue production increases of 400,000 barrels per day until February. Regarding the planned schedule, a meeting of the OPEC + Joint Ministerial Oversight Committee is currently underway, which may culminate in a recommendation for OPEC + policy. Markets will be more focused on the OPEC + oil ministers meeting, which is scheduled to start at 13:00 GMT and will actually result in a political decision. Analysts at RBC Capital Markets said OPEC + is unlikely to deviate from current policy given the positive price outlook and pressure from the US to boost supply, as well as the lack of major new restrictions. of Covid-19 in travel in key markets. “While Ómicron cases continue to increase in key geographies, the absence of widespread closure restrictions will likely keep concerns about short-term demand in check.”

Technical levels