27.11.202313:37 Forex Analysis & Reviews: Oil continues falling

Oil has fallen for the fourth consecutive trading day as traders have been waiting for the postponed OPEC+ meeting this week. The global benchmark, Brent crude, dropped to $80 per barrel after a 2.3% decline over the last three sessions, while West Texas Intermediate (WTI) is hovering around $75. Oil prices slid along with the stock market earlier this week after data showed that China's industrial company revenue grew much slower than expected in October. This highlights the risks to the growth of the world's largest oil importer.

Notably, the meeting of the Organization of the Petroleum Exporting Countries (OPEC) was postponed last week to decide on future supply policies. It is now expected that the meeting will take place on November 30. The dispute over quotas should be resolved by this time. The uncertainty surrounding future production levels has already impacted crude oil prices. Curiously, traders and analysts are expecting the OPEC+ group to take additional measures to reduce production and tighten the market.

"Saudi Arabia and other OPEC+ members will be keen to avoid any disunity," Vivek Dhar, an analyst at the Commonwealth Bank of Australia, told Bloomberg. "OPEC+ will have to show significant supply discipline, or at least jawbone such ability, to alleviate market worries of a deep surplus in oil markets next year."

Earlier this month, the International Energy Agency (IEA) forecast that the market would again see a surplus next year.

Premarketing session:

Nvidia shares closed with a decline of 1.9% on Friday. Reuters, citing sources, reported that Nvidia had informed its Chinese customers that it would delay the release of a new artificial intelligence chip until next year. Today, in pre-market trading, shares lost an additional approximately 0.44%.

Shares of electric vehicle startup Fisker jumped 5.2% on Friday after the company announced that it had filed its delayed quarterly report earlier this week due to accounting changes. Fisker also announced changes in its leadership. Today, in pre-market trading, shares lost 2.5%.

At the end of last week, shares of solar panel manufacturer First Solar fell 3.3%, and shares of SolarEdge dropped 0.8%. Invesco Solar ETF fell by about 1.3%. Stocks of companies involved in renewable energy sources slumped this quarter as higher interest rates led to increased financing costs for projects.

Apple shares dropped 1.34% on Friday after Reuters, citing data from Counterpoint Research, reported that the iPhone maker had seen a decline in smartphone sales during China's Singles' Day shopping season. In pre-market trading, the company's shares lost an additional 0.7%.