Due to the imminent OPEC+ result, WTI is expected to have a quiet start to the week around $75.
The OPEC+ discussions have been extended till Monday after the UAE opposed to the proposed output pact.
As the decision stays in focus, post-NFP USD depreciation provides some buffer.
WTI (futures on the New York Mercantile Exchange) has recovered from a brief slide to $74.75 lows and is now trading above $75, with small gains so far this Monday, as all eyes are on the OPEC and its allies (OPEC+) decision on the next course of action.
After the UAE opposed to a deal struck by the rest of the OPEC+ members to boost oil output by around 2 million barrels per day (bpd) from August to December 2021, investors are wary of making any bold wagers on the black gold.
Saudi Arabia’s Energy Minister fought back against the UAE’s opposition over the weekend, calling for ‘compromise and moderation,’ as global oil consumption is likely to surpass supply amid global economic growth.
Meanwhile, while investors consider the Fed’s future monetary policy steps in the aftermath of Friday’s NFP explosion, the downside in US oil remains cushioned by continued weakness in the US dollar.
Anxiety over the OPEC+ ruling, combined with an increase in US oil rigs, restricted the check’s upside below $75.50./n
