Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Oil prices Stabilize amid Anticipation of OPEC+ Cuts

Wed 27 Mar 2024 | 12:22 AM
Taarek Refaat

Oil prices stabilized without noticeable change on Tuesday, after oscillating between ups and downs, in light of the OPEC+ alliance preparing to confirm its policy of reducing production amid continuing tensions in the Middle East and Russia.

The global standard Brent crude price closed trading above $86 per barrel, while the price of West Texas Intermediate crude settled above $81. OPEC+ delegates see no need to change oil supply policy at next week's meeting, with quotas in place until June proving effective.

Technical indicators also appear positive, with the moving averages for Brent crude approaching the formation of what is called a “golden cross,” which is a bullish pattern that indicates the 50-day moving average of the oil price exceeding its 200-day counterpart. The last time the "golden cross" occurred was last August, with Brent crude rising by more than $10 per barrel to reach more than $95.

Signs of a shift in monetary policy also contributed to the overall mood. The US Federal Reserve has expressed its willingness to cut interest rates later this year, which has strengthened appetite for risky assets, including oil.

The price of oil rose about 14% during this quarter after emerging from a narrow range that dominated its movements during the first two months of the year. Ukraine's attacks on Russian refineries helped boost the rise, along with signs of strength in some product markets including gasoline. Overall positive market expectations prompted hedge funds to increase their bets on the rise in the Brent price.

Oil prices:

The price of West Texas Intermediate crude for May delivery fell 0.4% to settle at $81.62 per barrel.

The price of Brent crude for May settlement fell 0.6% to $86.25 per barrel