Crude Oil is flipping back and forth, turning red now after headlines emerge on Bloomberg and Reuters from OPEC+ delegates confirming that a three-month delay on its production normalization will be confirmed. The decision comes with OPEC+ taking into account that President-elect will issue more and bigger Oil sanctions on Iran and Venezuela once taking office in January. That would, according to OPEC+, create a bottleneck effect of which it can benefit to normalize its production output as op April 2025.The US Dollar Index (DXY) – which measures the performance of the US Dollar (USD) against a basket of currencies – is softening in very calm markets as the dust settles on the French political uncertainty after its government fell on Wednesday. Traders are sitting on their hands ahead of Friday’s Nonfarm Payrolls release, the last one of the year. Overnight, Fed Chairman Jerome Powell kept his cards close to his chest on the odds for a December rate cut, while commenting that the US debt is becoming unsustainable and needs to be addressed. At the time of writing, Crude Oil (WTI) trades at $68.45 and Brent Crude at $72.33Oil news and market movers: OPEC+ choses the bearish route

  • More headlines throughout this Thursday, with Reuters citing sources and delegates that an agreement in principal is there for a delay. The timing is still under discussion. 
  • Around 12:15 GMT, several media outlets are referring to sources that OPEC+ has agreed to delay its output normalization by three months and restart its offline production as of April 2025.
  • The overnight Crude stockpile change numbers from the Energy Information Administration (EIA) were completely different from the numbers seen earlier this week from the American Petroleum Institute (API). Whereas the API saw a surprise build of 1.232 million barrels, the EIA number came in as a surprise drawdown of 5.073 million barrels. 
  • OPEC+ is likely to extend their oil output cuts – originally scheduled to start in January – by at least three months, Reuters said in a Thursday report, citing OPEC+ sources.

    •  Oil Technical Analysis: That is underdeliveringCrude Oil price is now facing an even more uphill battle after OPEC+ is very close to cofirm it will delay its production normalization process by three months until April 2025. That is taking the most bearish way out, in line with market expectations and not offering much tailwind for upside in Crude Oil prices. One might even say, for OPEC+ to have the audacity to think that President-elect Donald Trump would do their dirty work for them by issuing bigger Oil embargoes against Iran and Venezuela, might be reason enough for OPEC+ to be punished with more downside in Oil prices. With the leg lower this week, the 55-day Simple Moving Average (SMA) at $70.17 triggered a firm rejection on Wednesday.A spike higher looks near impossible after recent comments, but traders must look out for $71.46 with the 100-day SMA at $71.65 as thick resistance. In case Oil traders can plough through that level, $75.27 is up next on the topside as pivotal level. On the other side, traders see  $67.12 – a level that held the price in May and June 2023 – rapidly nearing. In case that breaks, the 2024 year-to-date low emerges at $64.75, followed by $64.38, the low from 2023 will quickly be tested for more downside. More By This Author:US Dollar Settles Down And Turns Flat After French Turmoil Could End Quickly US Dollar Stretches Higher After Trump Tariff Threatens BRICS, French Political Turmoil Ahead Crude Oil Consolidates As Traders Prepare For Final Weeks Of 2024

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