Commodity traders are ready for retreat of oil price by the end of the year, after cooling the optimism of the OPEC+ quota deal. The prices of the raw material are at record high in last day, following the uptrend, which started on November 20. The investors are pretty optimistic about the extension of the OPEC quota deal, which includes also external producers, most important of which is Russia.
Today is held important meeting of the OPEC members with oil ministers from the non-OPEC countries, participating in the quota deal. During it, it is expected extension of the agreement for limiting production, which expires in March, with another 9 months til the end of the year. Such agreement probably will be concluded, but many traders might not be too exalted from this. The price already gained speed last days in anticipation of the meeting, but moods will cool a little if there is no big positive surprise.
Another important factor at the oil price is the coming end of the year, as well as holiday season. During it, most of the traders prefer to keep their positions closed, or reduce the contracts volumes. This probably will keep the markets too volatile and trading not too attractive, which can lead to reduction of the price range.
The US producers oil are also recovering from the hurricanes season, which caused significant stops of many rigs in the Gulf of Mexico and Texas region. They will try to compensate the missing quantities during the stop at the end of the year, moreover at such affordable price of the raw material.
All these fact made the experts more conservative to the oil price trends. Probably by the end of the year they WTI oil price will normalize at range of 43-45 USD per barrel, with option to raise in the beginning of the new year. The Brent also expected to retreat by 2-3 USD per barrel by the end of the year.