WTI sticks within $78.00-$79.00 range as markets mull OPEC+’s next move

• Oil markets have been rangebound on Wednesday and for the most part stuck within $78.00-$79.00 parameters.
• A WSJ report suggested the Saudis and Russian might be willing to halt future output hikes following the SPR release.

Despite a bombardment of US macro data that ultimately contributed helped push the US dollar to fresh annual highs, an onslaught of European lockdown-related updates and official US crude inventory numbers, crude oil markets have been quite subdued on Wednesday. Front-month futures of the American benchmark for sweet lift crude oil, West Texas Intermediary or WTI, has stuck within a $78.00-$79.00 range for the bulk of the session. At current levels just under $78.50, WTI trades almost bang on flat for the day.

The main theme in crude oil markets continues to be the global coordinated crude oil reserve release and OPEC+’s response. The latest on that front was a report from the Wall Street Journal that suggested central OPEC+ members Saudi Arabia and Russia might be considering pausing output hikes in the months ahead, although separate OPEC+ sources later refuted this idea. OPEC+ oil ministers are scheduled to meet on 2 December, following a meeting of the cartel’s Joint Technical Committee (JTC) on 30 November. Further sources suggested that OPEC+ wants to wait to see the conclusions of its research department before deciding on the next monthly adjustment.

Whilst the release of the now somewhat stale FOMC minutes at 1900GMT on Wednesday will likely turn some heads in FX, bond and maybe equity markets, crude oil traders are less likely to be fussed. Indeed, the outlook for trading conditions for the rest of the week is for low volumes and a lack of conviction. That’s because US markets are closed on Thursday for Thanksgiving, which means futures trade (including for WTI) will close between the hours of 1800GMT and 2300GMT. Some US markets then shut early on Friday though not futures. Many US markets.