Pre Open US - US Oil 14 Aug 2023

The OPEC+ panel is set to meet virtually on Friday, with attention focused on Saudi Arabia's production plans. While no major policy changes are anticipated, Saudi Arabia might indicate whether it will extend its 1 million bpd production cut into September. Oil prices showed a slight increase.

The Joint Ministerial Monitoring Committee (JMMC) of OPEC+ meets to assess recent market developments. Saudi Arabia's potential extension of its production cut is drawing attention, as analysts predict its continuation due to stable oil prices. Riyadh aims to maintain market stability after a recent price recovery. The JMMC is unlikely to recommend altering the current production policy during this meeting.

Oil prices were slightly lower due to a risk-off sentiment after a U.S. Long-Term Ratings downgrade by Fitch. Prices quickly rebounded, trading flat. The market anticipates Saudi Arabia's decision on extending the production cut after the JMMC meeting and before the official selling prices (OSPs) announcement. OSPs are typically released around the 5th of the month preceding the loading month.

Technically, WTI made an awaited breakout beyond the 83-resistance level and now the 100MA on the weekly channel playing the role of resistance level. Also, the bullish trend line on the daily chart continues to support the actual trend.