Monday, October 19, 2020

This is the Crude Oil Price Movement at the beginning of the week

 Black commodity trading opened slightly lower at the beginning of the week ahead of the OPEC + Joint Ministerial Monitoring Committee meeting (JMMC) today, apart from being shown by the lackluster reading of economic data from China.

US WTI crude futures traded at $ 40.98 a barrel, while Brent crude was at $ 42.76 a barrel.

Today's JMMC meeting is expected to see discussions on the issue of compliance with production cuts by several producing countries and concerns over a new wave of Covid-19 outbreaks across the country affecting recovery efforts.

However, discussions on OPEC +'s commitment to the demand for delayed production cuts will be held in a meeting involving all OPEC members on 30 November.

Earlier it was reported that OPEC + plans to ease production cuts in January, from 7.7 million barrels a day to 5.8 million barrels a day.

Meanwhile, China's economy continued to show recovery in the third quarter with 4.9% growth. However, this reading slightly disappointed market expectations projecting a growth of 5.2%.

Nevertheless, China's economy as a whole is still showing steady growth, supported by positive readings from other encouraging economic data especially in the manufacturing, export, consumer spending sectors.