On the eve of the much-anticipated OPEC meeting, here is a look at how the energy markets are heading in overnight trading:
- West Texas Intermediate (WTI) crude oil: +1.53% to $88.20
- Brent crude: +1.53% to $94.44
- Natural gas: +1.83% to $8.947
- RBOB gasoline: +0.29% to $2.47
- Heating oil: +3.57% to $3.7058
Financial markets are expecting the Organization of the Petroleum Exporting Countries to slash production levels.
Renewed lockdowns in China, growing global recession fears, and tightening central banks are all factors that could force the cartel to either freeze or cut output.
When Saudi Arabia’s energy minister suggested this would happen, be it because of demand or an Iran-West nuclear agreement, Brent prices topped $100 a barrel.
If OPEC cuts production, WTI and Brent could find modest support.
If OPEC leaves things as they are, it is likely that WTI and Brent could extend their losses.
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