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More Turmoil For Crude Oil: OPEC+ Ready, But Powell Tapers

Dec. 04, 2021 12:56 AM ETCrude Oil Futures (CL1:COM)USO, UCO, SCO, BNO, DBO, OIL, OILC, OILD, OILK, OILX4 Comments
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M&T Research Group


  • OPEC+ sticks to January output hike, but demand collapse may be imminent with the emergence of the omicron variant.
  • Powell announces an increase in asset purchase tapering, sending inflation breakevens lower.
  • Inventory releases suggest supply is dwindling on the back of volatile market conditions and a return to normalcy might provide a demand shock.
  • Technical indicators suggest a larger drawn-out decline is in order based on Elliott Wave analysis, price level establishments, and fundamental factors.

Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field.

peshkov/iStock via Getty Images


The sharp decline in West Texas Intermediate Crude Oil prices on the back of the omicron coronavirus variant outbreak has left many key market participants and facilitators reeling from the shock. Compounding the price action

This article was written by

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M&T Research Group is a collaboration between Heidi Tait, a Stock Options, Futures, and Forex trader, and Daniel Michael, a Petroleum Engineer interested in oil & gas market mechanics and money flow. We focus on sharing actionable trades and plays in our areas of interest while collaboratively writing about key economic events and developments, commodities and E&P stocks and derivatives, and options plays.

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Comments (4)

cenc profile picture
SPR release being announced not because of price issues, but because of the build-up of troops on the Ukraine boarder. full show coming to a theater of war near you in January.
Long Time Running profile picture
@cenc , Ukraine has over 90,000 troops trained and ready to go and another 4 million on active reserve. NATO has been supporting training and upgrades to equipment.

The russkies might have a difficult time crossing a fortified border.

The SPR release was a good defensive move against SA and Russia.

The UAE and Kuwait are the only 2 OPEC countries capable and wanting to increase production to gain market share. The rest of OPEC and Russia are not capable of Increasing production or want the price to stay high to finance their domestice problems.

Russia's economy is collapsing, Putin is playing the nationalist card (threatening Ukraine) to take attention off him.

Bringing Iran into the market will further put the boots to Putin and MBS.
Djreef1966 profile picture
Demand collapse? LOL!
M&T Research Group profile picture
@Djreef1966 Only in the short-term, not for the long-term.
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