Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Oil price: what to expect from this week’s OPEC+ meeting?

There is little sign that the surge of the crude oil price will slow down soon. OPEC+ is expected to stick with the existing policy of gradual increase of output target for March.

Oil price OPEG+ meeting preview Source: Bloomberg

Crude oil prices have been on rally for the sixth straight week, hitting the seven-year highs.

Supply and Demand

Brent crude oil price touched $91 per barrel briefly this week for the first time in seven years. However, market participants are expecting the price to edge even higher. The latest round of jump was attributed to the tensions around Ukraine and Russia, but fundamentally, the divergence between its supply and demand is the key driver.

Brent Crude oil chart Source: Trading Economics

After six straight weeks’ rallies, both benchmarks recorded their highest since October 2014 on Jan. 28. Brent Crude pumped up to $91.64, while WTI headed to $88.57 on the same day.

There is little sign that the surge of the crude oil price will slow down soon. At its upcoming Feb. 2 meeting, OPEC+ is expected to stick with the existing policy of gradual increase of output target for March as it sees demand recovering. Despite downside risks from the pandemic and looming interest rate rises, tensions between Russia and the West fanning fears that energy supplies will be disrupted. A tighter market combined will undoubtedly drive oil prices even higher if that happens.

However, the sky-high oil price can also trigger a slowdown in consumption. Consumer sentiment in the United States fell in January to the lowest level since November 2011 is one of the recent examples. Considering that high gasoline prices are a primary concern for already-flying inflation, governments and central banks could respond with either releasing more of their reserve or sooner interest rate hikes to tame energy-driven price increase.

Technical Analysis

Brent Crude

From the daily chart, it’s clear that the price is glued to the upward trajectory since end of 2020. The last high from Oct 2021 is playing as a key support for now, nearing $85. Looking ahead, the next record to expect will be looking at the upper boundary of the moving tunnel, approx $93, the price last seen in September 2014.

However, if we take a closer look at the hourly chart, the price has been oscillating between $87.9 and $89.7 since Jan 26th, combined with a flattering RSI, seems to suggest the price is ready for a consolidation before the next push.

Brent Crude hourly chart Brent Crude hourly chart
Brent Crude chart

WTI

WTI Crude Oil price has increased by 17.72% since the beginning of 2022 and recorded its sixth consecutive week of upward journey. Key support for WTI Crude can be found at $85.90 now, which if broken, would see the price to retest the hilltop of Oct-Nov’s high around $84.40. The next record high to eye on will be $90 per barrel, a price level reached on Sep 29, 2014.

WTI daily

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.