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Market News NYMEX is expected to drop further to $77.16

NYMEX is expected to drop further to $77.16

On November 5, international oil prices rose, partially recovering from the previous day’s decline. Although OPEC+ oil-producing countries continue to gradually resume oil production interrupted by the epidemic as originally planned, there are signs that high oil prices may encourage other places to increase supply. NYMEX market outlook is expected to further drop to 77.16 US dollars.

2021-11-05
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On Friday (November 5), international oil prices rose, partially recovering from the previous day's decline. Although OPEC+ oil-producing countries continue to gradually resume oil production interrupted by the epidemic as originally planned, there are signs that high oil prices may encourage other places to increase supply. NYMEX market outlook is expected to further drop to 77.16 US dollars.

GMT+8 13:35, NYMEX crude oil futures rose 0.61% to 79.29 US dollars / barrel; ICE Brent crude oil futures rose 0.42% to 80.88 US dollars / barrel. Both cities recorded a new low since October 7 overnight, reaching US$78.25/barrel and US$80.20/barrel respectively.


The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed at a meeting on Thursday (November 4) that they will continue to implement the plan to increase oil production by 400,000 barrels per day in December, despite the U.S. call for further increases in production. Let the rising oil prices cool down.

Edward Moya, senior market analyst at OANDA, said: "This is a fast-paced OPEC+ industrial policy meeting. OPEC+ has not considered changing its output strategy at all. This is their message."

After the COVID-19 pandemic caused a decline in demand, OPEC+ has been restricting supply. NYMEX oil prices recently hit a new high in more than seven years, but oil prices fell earlier this week due to rising US inventories and signs that high oil prices may encourage other places to increase supply.

U.S. President Biden last week urged the major energy producers in the Group of 20 (G20) with idle capacity to increase production to ensure a stronger recovery of the global economy. A White House spokesperson said on Thursday: "The President believes that Americans should have access to affordable energy, including at gas stations, and instructed us to continue to monitor the market and be prepared to use all tools when needed."

On the hourly chart, NYMEX crude oil is in a downward Y wave that started from 84.88 US dollars and fell below the 138.2% target of 78.29 US dollars. The market outlook is expected to drop to the 168.2% target of 77.16 US dollars. Y prodigal son is the son wave of the adjustment (2) wave that started from $85.41. Wave 2 is a sub-wave of the upward ((3)) wave that started at $61.74.
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