For the fifth straight month, I continue to expect West Texas Intermediate oil prices to range between $52.50 and $62.50.
With the expected announcement of the US-China phase-one trade deal and with the upcoming OPEC+ meeting on December 5 and 6, there is no point commenting on November’s events. These two upcoming events overshadow most everything else. Of course, the trade deal is not a sure thing, but recent comments in the press suggest that the two sides are very close. Various officials from OPEC+ keep shifting their positions, often day-by-day. I suspect that much of the recent commentary is posturing for negotiating leverage during the official meetings.
My general expectation is that oil will remain range bound between $52.50 and $62.50 for a while, with oil prices usually avoiding the top quartile of that range.
I am hoping that the phase-one trade deal is announced soon and that the OPEC+ meeting goes well without any negative surprises.