OPEC: The Oil decision showed the rift in the US – Saudi Arabia relationsOct 7, 2022

OPEC decided in its first one-on-one meeting since 2020 to cut production by up to 2 million barrels per day from November, adding a new ‘’headache’’ to Europe’.

In the red are now the relations between the world’s largest energy poles, after reducing the daily oil production by 2 million barrels as OPEC decided, adding a new ‘’headache’’ to Europe’s energy security. That decision surprised all the analysts who expected a reduction of 1 million barrels. Simultaneously, with the prices of natural gas being very expensive due to Russia’s pipelines, they took advantage to sell their liquified natural gas.

OPEC decided in its first one-on-one meeting since 2020 to cut production by up to 2 million barrels per day from November. Oil prices have fallen to around $90 a barrel from $120 in early June, amid growing fears of the prospect of a global economic recession. However, still not knowing how long will it last and with what intensity, predictions are useless for now.

From an Elliot wave perspective, we will examine the Crude Oil chart to see the possible move shortly.

Brent Crude Oil Weekly Chart

Looking at the weekly chart, we see an upward move from $15.98 very strong one. Ideally it’s the V wave that will probably reach $147.02, since we see drop from $139.00 in three waves now at key support with subwave C. A break above the trendline resistance can cause acceleration higher.

by Grega Horvat and Stavros Chanidis

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