Oil price analysis: WTI $56.76 +2c, Brent $63.16 -36c, Diff -$6.40 -38c, NG $3.17 -5c

The latest Opec report is so bullish that people can hardly believe their eyes, demand for their crude this year is up 200/- b/d and for next year by 400/- b/d. This would give overall demand for 2018 at 33.4m b/d with a second half of as much as 34m b/d, put into context Opec is currently producing around 32.6m b/d. Now, the market has already priced in quite a lot of this which is I suppose why oil is only just hanging on to these higher levels, much can still go wrong. It is only just over a fortnight to go before the Opec meeting and of course all the other meetings that will happen at the same time with Non-Opec partners and a great deal of optimism is priced into the market. A minimum requirement is an extension of the agreement, let’s hope that the recent rally doesn’t go to their heads…

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.