Selling Brent crude as it strengthens to $67.70 per barrel

OPEC+ confirmed a modest production increase for November, a less aggressive move than some had predicted. This alleviated fears of a rapid supply expansion, though weak demand prospects will likely restrict short-term growth. The group announced it would boost output by 137,000 barrels per day (bpd), maintaining a consistent pattern of monthly hikes similar to those in October, as the alliance keeps addressing concerns over an oversaturated market.

Prior to the decision, a split in strategy was reported among OPEC+ members, with Russia pushing for a smaller increase to prevent prices from dropping. In contrast, Saudi Arabia was said to favor a significantly larger hike—potentially doubling, tripling, or quadrupling the figure—in a bid to reclaim its market share more swiftly from competitors like US shale producers. This marks a strategic shift following years of output cuts. 

Weak demand expected in the last three months of the year is still holding back market growth. A phase of oversupply is now underway, with seasonal consumption projected to decline during the winter, and broader macroeconomic indicators failing to signal robust development.

This environment keeps a lid on Brent crude. However, there is some potential for upward movement, given that the newly announced production volumes were lower than some market participants anticipated.

The overall recommendation is to sell Brent crude at $67.70 per barrel. Profits are taken at $66.00. Stop loss is set at $69.00.

Calculate your open position so that a potential loss (protected by a Stop Loss order) is limited to 1% of your deposit. If your account balance does not allow entering a position of this size, it is better to skip the trade and wait for other market signals that meet low-risk criteria.