Oil prices are rising for the second day in a row as markets wait for the outcome of this week’s OPEC+ meeting. Analysts expect the cartel to extend its production cut for at least three months, while market sentiment is improving thanks to news of Moderna’s 95.4% successful trial of a Covid-19 vaccine.
Brent crude futures for January rose 0.6% to $44.08, while WTI futures rose 0.4% to $41.52.
OPEC+ is due to hold a ministerial committee meeting today; it is likely to recommend changes to production quotas when the ministers meet on November 30 and December 1.
According to the EIA, shale oil production in the US is expected to decline in December to its lowest level since June.
Meanwhile, the Reserve Bank of Australia has confirmed that it is ready to maintain its expansionary monetary policy to manage the recovery from the pandemic
Today, global markets are anticipating the retail sales reading in the US, which may have a strong impact on the US dollar's trading against the other major currencies. The pace of retail sales growth is expected to slow down, growing 0.5% month-on-month after increasing 1.9% in September. Basic sales (excluding auto sales) could increase by 0.6%.
The Dow Jones is trading near its historic high at 29,900, and the index is expected to face strong resistance at 30,000 levels.
European indices are stable near their eight-month highs amid the contrasting drivers of the return of lockdowns in key markets and positive vaccine news.
The DAX index rose somewhat at the beginning of today's session to currently trade near 13130 levels, and is likely to continue its rise to the resistance level 13300.
On the downside, the price retreated and broke the support level 13080, which will support the negative view of the index’s potential move towards 12900 levels.