Morning Highlights
Morning Highlights

12-02-21 OPEC+ will add in Jan, energies rebound...

Tony Headrick

Dec 2, 2021

Outlook: OPEC+ has decided to go-ahead with adding 400,000 bpd of production in January. Energies initially dipped sharply with nearby ULSD falling to a low of 2.0069 but buying since then has been consistent and  current trade is all the way up to 2.1200. With OPEC+ moving forward with the increase, this suggests that they have insight to view the omicron variant will not have a material impact on demand. Elsewhere, equities are higher after better than anticipated initial jobless claims and the US dollar is lower, adding to upward pressure in energies.

Continuous Daily ULSD: When prices fall below the low from the day prior and close above the high from the day prior it is considered a key reversal higher. Trade is not there yet in ULSD but with current trade at 2.1141 would need to close above 2.1600 to consider it a key reversal higher. The 200-day moving average at 2.1172 is also a consideration.