OPEC’s Adjusts Oil Demand Expectations While Investors Are Anticipating Today’s Inflation Data

market news summary

In its monthly report, the OPEC organization confirmed its expectations for stable global economic growth, with a projected growth rate of 2.7% for 2023 and 2.6% for 2024. As for global oil demand, it maintained its forecasts at 2.4 million barrels per day for 2023, with a slight growth expected in the following year, reaching 2.2 million barrels per day for 2024. Regarding OPEC’s oil demand growth, the organization decided to reduce its expectations by 100,000 barrels per day for both 2023 and 2024.

Japanese stocks rose by approximately 1% at the close on Tuesday, September 12, led by automotive companies, as the yen weakened from its one-week high, supporting the shares of export-oriented firms and risk appetite. The Nikkei index gained 0.95% to close near its session high at 32,776.37 points, while the broader Topix index ended the session up 0.82% at 2,379.91 points.

Dollar Index (USDX)

The dollar index rose by 0.3% ahead of the release of the US Consumer Price Index data scheduled for today, Wednesday, which could impact the Federal Reserve’s decision on interest rates.

According to a Reuters survey, the inflation rate in the United States increased by 0.6% in August compared to 0.2% in the previous month.

Pivot point: 104.60

Resistance level	Support level
104.80	104.30
105.10	104.10
105.30	103.80

Spot Gold (XAUUSD)

Gold prices fell to their lowest level in over two weeks on Tuesday as the dollar strengthened, and investors awaited the release of US inflation data on Wednesday.

Spot gold dropped 0.6% to $1,909.50 per ounce, marking its lowest level since August 25th, while US gold futures fell 0.8% to $1,932.60 per ounce.

Pivot point: 1915

Resistance level	Support level
1922	1905
1931	1898
1939	1888

Dow Jones Index (DJ30ft – US30)

US indices closed with collective losses on Tuesday, pressured by Apple’s stock and growing concerns about the impact of high oil prices on inflation data.

The Dow Jones Industrial Average fell by 0.05%, equivalent to 17 points, following three consecutive sessions of gains. The S&P 500 and Nasdaq indices declined by about 0.6% and 1%, respectively, after two consecutive sessions of gains. This drop was driven by the decline in the cloud computing stocks of Amazon and Microsoft, which were affected by Oracle’s weak outlook and rising Treasury bond yields.

Apple’s stock dropped by 1.7%, causing the company to lose approximately $48 billion in market value during Tuesday’s session and around $315 billion since its peak on July 31st.

Pivot point: 34700

Resistance level	Support level
34840	34525
35015	34380
35160	34205

US Crude (USOUSD)

Oil prices surged by around 2%, nearing their highest level in 10 months on Tuesday, supported by expectations of supply shortages and optimism from OPEC regarding the strength of fuel demand in major economies.

Brent crude futures rose by $1.42, or 1.6%, to settle at $92.06 per barrel, while West Texas Intermediate (WTI) crude futures increased by $1.55, or 1.8%, to $88.84 per barrel at the close. This marked the highest settlement price for both crude oils since November 2022.

Pivot point: 88.40

Resistance level	Support level
89.65	87.50
90.55	86.30
91.80	85.40

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