Market Reviews

King’s move



Oil is the main raw material on the planet and what is now happening with this asset is comparable to a chess game of important political figures, which we wrote about in previous articles. After America made its move and lifted sanctions on Venezuela, which is one of the major players in the oil market, market participants began to expect action from the opponent, watching the chess table. On Thursday, November 30, an OPEC meeting will take place and a response move to contain and increase prices for black gold. Of course, checkmate will not happen. Most likely, agreements to reduce production will continue in order to raise prices higher, but taking into account current market realities and problems in the economies of developing countries, the price will be around $97 per barrel. The technical picture on the asset chart also indicates a reversal and the sentiment of market participants to buy oil. The main demand is concentrated around $80 per barrel. But the question is different. How effective the actions of the OPEC countries will be, and what the opponent’s next move will be.

Time will tell how much these events and the decisions made by the players in this “chess game” will drive up oil prices.