The ongoing discussion in the OPEC oil cartel, to meet for a new production cut discussion on December 1 2020 in Vienna, Austria, is not looking to be a boost for the market. Even that there is strong optimism in the market currently pushing WTI and Brent to the highest levels of 2020, breaking almost pre-Corona levels, underlying sentiments and indicators, available to AI-machine learning systems show a clean break potential around the OPEC-meeting.
Oil is the most traded commodity! Oil derived products are woven into our society and companies and countries rely on its availability and income. Global oil markets are heading towards increased volatility again. The already toxic combination of COVID-19 demand destruction, OPEC+ fledgling strategies and a possible renewable energy surge, is hitting oil markets worldwide. Conventional approaches to look only at the impact of market fundamentals, as proponed by the majority of oil and gas analysts, institutional investors and governments, is since long undermined by the impact of geopolitics, monopolies and infrastructural constraints.
Despite pressure on revenues from oil and gas, Arab sovereign wealth funds are taking opportunistic bets in foreign markets in the face of global economic turmoil.
Dutch British oil and gas major Royal Dutch Shell has presented in its latest update today a very bearish view on the oil and gas market.
Optimism is supposedly back in oil markets, with the Global Research team at Bank of America lifting its oil price forecast for this year and next as demand recovers from coronavirus-linked shutdowns, the OPEC+ output cut deal curtails supply, and producers slash capital expenditure.