WTII crude rises above $70 before the OPEC decision

Oil is posting strong gains ahead of Thursday’s OPEC meeting. WTI crude oil is up $1.93 to $70.03 per barrel, which is a one-week high.

The crude market is carefully waiting for indications on production from OPEC+, though the consensus appears to be settling around a delay of planned production increases through Q1. Tensions between Israel an Libya may also be weighing as the ceasefire is repeatedly violated. The market is also carefully watching for Iranian involvement in Syria or any repercussion on oil producing countries from that conflict.

A survey today showed OPEC production rose in November but some bulls took heart from indications that frequent quota-violators Iraq and Kazakhstan fell in line.

Technically, today’s move doesn’t mean much as it will take a break below $66.61 or above $71.50 to trigger a larger move.

This article was written by Adam Button at www.forexlive.com.