It seems that the main result of the OPEC+ meeting in Abu Dhabi was the absence of the expected result. At the end of the meeting, which is due to end on Tuesday, no traditional statement or publication of the final resolution was made.
It seems that either the meeting is not over yet since no information about its end was received, or it ended in complete failure. It is important to recall that it was expected for the summit to discuss the failure of some participants of the pact to reduce the production of crude oil and the failure to accomplish the promised quotas on the reduction of production. It was also in the summit where the inflated production by Nigeria, especially in Libya is supposed to be discussed. Libya was exempted from participation in the pact. However, no news have been received on this score. Apparently, the closed meeting is still ongoing. And if today yields no news, we can say with confidence that all the OPEC+ plans aimed at regulating the supply of "black gold" to the world market and artificially stimulating price growth have failed.
An indication from this point of view is the market reaction to the publication late in the evening of data on US oil reserves. The data fell significantly, losing 7.8 million barrels. Meanwhile, gasoline stocks rose by 1.5 million barrels. However, observing the reaction of the market, it can be stated with a high level of confidence that the hopes that the OPEC+ can indeed change its situation with its coordinated measures are illogical.
Data from the American Petroleum Institute could not support oil quotes. It resumed a gradual decline at the auctions in Asia. Today, the focus of the market will be the publication of data from the US Department of Energy. If they show either an increase in inventories or a greater decline, especially in gasoline and if stocks of petroleum products will rise in Cushing, Oklahoma, we could expect the oil price to continue to fall to $45 per barrel. This will also most likely increase the negative sentiment of market players.
Forecast of the day:
The EUR/USD pair is trading below the 1.1750 level. If it does not grow and stay above 1.1750, there is a probability of a fall to 1.660 to 1.1625.
The GBP/USD pair is consolidating above the level of 1.3020. We expect that it will resume its decline unless it rises above 1.0320. In this case, we should expect its decrease to 1.2950 to 1.2840.