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The high prices of oil pose a threat of creating anti-coalition

Tomorrow, November 4, an OPEC meeting will be held, at which the participating countries will discuss the current situation in the oil market. Most oil-producing countries are in favor of maintaining previously approved plans to increase production.

At the same time, a coalition of those dissatisfied with the high prices of oil is already being planned in consumer countries, calling on OPEC to accelerate the increase in production. In addition, over the weekend, China announced that it would release part of gasoline and diesel fuel stocks from strategic reserves to support supply in the market and curb price increases in some regions.

Among the dissatisfied, America takes the first place, as always, Biden will influence Saudi Arabia and Russia, blaming them for the rise in gasoline prices. So the cost of gasoline in the States rose to $ 3.7 per gallon, which is the highest value in the last seven years. According to experts, Washington is assembling a coalition against Saudi Arabia and Russia due to rising oil prices to put pressure on them.

It may include China, Japan, and India, which are significant oil consumers in the world. Moreover, the escalation of the conflict may lead to new sanctions threats if the cartel, with the participation of Saudi Arabia and Russia, does not take any action at the next meeting on November 4. So not everyone is satisfied with the current level of oil prices, and the higher the quotes are, the more likely the tightening of rhetoric from the United States is.

On the eve of the OPEC meeting, Brent crude oil demonstrates corrective dynamics, trading near the level of $ 83.50 per barrel. The primary resistance is $ 86.74 per barrel, where the January 2018 maximum is. Near this milestone, Brent crude oil quotes turned down, showing a peak on October 25 at $ 86.70 per barrel. It is worth noting that oil is already outside the upward trend going on since August 23.

The chances of developing corrective dynamics may increase if the level of $ 83 per barrel. Then the next target of the pullback may be the level of $ 79.80-$80 per barrel — this is the area of the extremes of late September-early October and the moving average EMA55 the other day. So this time, there are high chances that after the OPEC meeting, prices will decrease and not increase as it was in previous times.

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