Oil is getting cheaper in anticipation of the OPEC+ meeting

On Monday, world oil prices show a slight decline, and investors are waiting for the results of the meeting of the OPEC+ committee scheduled for Wednesday, February 1.

The current quotation of Brent crude oil is $86.05 per barrel, North American WTI oil is trading near the level of $79.30 per barrel.  

The main pressure on the oil market is exerted by expectations of decisions to be taken at the Ministerial Monitoring Committee (JMMC). JMMC meetings are held every two months, and meetings of all OPEC+ representatives are held every six months. The next events are scheduled for February 1 and June 4, respectively. 

Market participants expect that the committee will recommend the alliance to maintain the current level of oil production. However, in general, the situation for the oil market remains ambiguous. Over the weekend, there was an escalation of political tensions around Iran, which is under sanctions, which increased risks about the prospects of Iranian oil supplies to the market.

At the same time, investors continue to assess the prospects for economic recovery in China, one of the largest importers and consumers of oil in the world. Analysts believe that the easing of quarantine in the country and the «opening» of the Chinese economy is unlikely to be embedded in the prices on the oil market.