At its upcoming meeting on October 5, OPEC+ is set to approve one more production hike of at least 137,000 barrels per day (bpd). Higher oil prices motivate the alliance to keep reclaiming its market share, as said by three sources familiar with the matter. This comes on the heels of a strategic shift where OPEC+ went back on its April output cut, having increased collective quotas by over 2.5 million bpd—equivalent to around 2.4% of global demand.
On October 5, the eight OPEC+ nations, which together account for roughly half of the world's crude supply, will hold an online meeting to decide on November's production levels. The coalition consists of the Organization of Petroleum Exporting Countries (OPEC) and associated allies, including Russia. The group plans to fully reinstate one segment of cuts, totaling 2.2 million bpd, by the end of September. A second segment, amounting to 1.65 million bpd, will be gradually revised in October, likely starting with an increase of 137,000 bpd. On top of that, the United Arab Emirates has been given the green light to boost its own output by 300,000 bpd between April and September.
These developments create additional resistance for Brent crude attempting to surpass $69.90 per barrel. A return to this price level would be the perfect time to start selling.
The overall recommendation is to sell Brent crude at $69.90. Profits are taken at $68.50. Stop loss is set at $70.50.
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.
This content is for informational purposes only and is not intended to be investing advice.
