Crude oil price rises ahead of an important OPEC+ meeting
The price of crude oil bounced back today ahead of an important meeting of OPEC and its allies. According to Bloomberg, Saudi Arabia and Russia, the biggest members in OPEC+, summoned ministers of the group to a meeting on Saturday. The virtual meeting will come two days before a full meeting where they will deliberate on supply and demand issues. Analysts expect that the group will decide to leave the current supply cuts intact through January. Still, some members, such as those from Nigeria and the United Arab Emirates have complained about continued cuts.
The euro was little changed today as traders reacted to the latest inflation and sentiment data from the region. According to the French statistics office, the headline consumer prices rose by a monthly and annualised rate of 0.2% in November. That was a slight improvement over October’s increase of 0.1%. The harmonised CPI also increased at the same pace. Further data showed that the French and Swedish economies expanded by 18.7% and 4.9% in the third quarter. Meanwhile, according to the European Commission, consumer confidence in the Eurozone fell to -17.6 in November while the services and industrial sentiment fell to -17.3 and -10.1, respectively.
Global stocks were little changed today as the absence of US investors hurt market demand. Most large investors and traders from the US are celebrating their Thanksgiving weekend. While US exchanges were closed yesterday, they will open for half a day today but volume is expected to be relatively low. In the UK, the FTSE 100 dropped by 0.78% partly because of the recent warning by Rishi Sunak about the state of the economy. In Germany, the DAX index was little changed mostly because of the weak performance by automakers.
The XTI/USD rose from a low of 44.62 to the current 45.32. On the four-hour chart, the price is above the 25-day exponential moving average. At the same time, the Relative Strength Index (RSI) has moved from the overbought level of 76 to 60. Similarly, the Average True Range (ATR) has also started rising. Therefore, the pair is likely to continue rising as bulls aim for the next resistance level at 46.32.
The EUR/USD price rose to an intraday high of 1.1932. On the daily chart, the price is above the 25-day moving average and slightly below the upper side of the Bollinger Bands. The RSI has also moved close to the overbought level of 70. The Stochastic oscillator also moved above the overbought level. It is also above the ascending red trendline. This is a sign that the pair will continue rising as bulls aim for the next resistance at 1.2015.
The DAX index is trading at €13,295, which is at an important resistance level since it has been its highest level this month. The price is also slightly above the two lines of the envelopes indicator. The average true range (ATR) has moved to the lowest level in months, which is a sign of low volatility. The dots of the Parabolic SAR are also below the price. For today, the pair may remain at the current level ahead of a potential breakout in the coming week.