Oil could rebound post further voluntary cuts

As voluntary production cuts are demanded by Russia and Saudi Arabia, oil traders are expecting a recovery in the oil market. Due to gloomy weather forecasts, natural gas is trading below $2.60, while WTI oil has pared some of its weekly losses and is moving closer to $71.50. As of writing, WTI is trading at $71.22.

In the midst of a widespread increase in the oil markets on Friday, Brent oil crossed the $76.00 mark. However, as of this writing, it is declining to $75.81. Natural gas is currently trading between $2.60 and $2.65, which is the closest resistance level. A move above $2.65 would take it closer to the next resistance, which is between $2.80 and $2.85.

WTI oil is rising as a result of traders’ reactions to the recent meeting between Saudi Arabia and Russia, in which both nations demanded that all OPEC+ members participate in production cuts.

WTI oil will move towards the closest resistance in the $73.00–$74.00 range if it settles above the $71.50 mark. As investors place bets on a recovery following the significant decline from September highs, Brent oil is rising.

The gas storage tanks of the European Union are almost 95% full as they head into the winter of 2023–2024.

The industry is being severely impacted by cyclical factors such as the low demand in China and the sharp increase in interest rates, but the energy shock may cause long-term harm. Global LNG supplies are on track to jump by half by 2028, mostly thanks to the US and Qatar’s supplies.

It is worth noting that US energy firms this week added oil and natural gas rigs for a fourth week in a row for the first time since November 2022, energy services firm Baker Hughes said in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future output, rose by one to 626 in the week to Dec. 8, its highest since September.