Commodity Market: US Crude Oil retreats, OPEC+ members to resume production cut extension discussions

After gaining over 1.6% on Wednesday, futures on US West Texas Intermediate Crude Oil retreated on Thursday, as oil producers argued over the need to extend unprecedented production cuts that were put into place at the start of the coronavirus pandemic.

The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, are expected to resume discussions today in order to reach a consensus on policies for next year. No compromise has been reached during earlier discussions about how to deal with weak oil demand in the midst of a new wave of COVID-19 infections.

The group had been largely anticipated to continue the 7.7-million-barrel-per-day oil production cuts at least until March 2021. However, since oil prices rallied at the end of last month due to optimism over a fast approval of COVID-19 vaccines, some OPEC members doubted the need to tighten policy.

Yesterday Pfizer Inc’s anti-virus vaccine received an approval from British authorities.

As of 10:20 GMT on Thursday WTI Crude Oil Futures were retreating 0.40% to trade at $45.10 per barrel, while moving within a daily range of $44.66-$45.48 per barrel. WTI Crude Oil Futures have retreated 0.49% so far in December, following a 26.68% surge in November, the biggest since May.

Brent Oil Futures were inching down 0.08% on the day to trade at $47.90 per barrel, while moving within a daily range of $47.70-$48.52 per barrel. Brent Oil Futures have risen 0.59% so far in December, following a 25.83% surge in November, or the biggest since May.

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $45.04
R1 – $46.16
R2 – $47.04
R3 – $48.16
R4 – $49.28

S1 – $44.16
S2 – $43.04
S3 – $42.16
S4 – $41.28

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $47.84
R1 – $48.84
R2 – $49.74
R3 – $50.74
R4 – $51.74

S1 – $46.94
S2 – $45.94
S3 – $45.04
S4 – $44.14