Nymex crude oil futures are testing the $80 psychological

NYMEX crude oil futures are testing the $80 psychological barrier again amid talk of extended production cuts by OPEC+. Price stability around these levels will likely determine the next directional breakout in energy markets. In September, increasing OPEC+ production and U.S. energy policy supporting more fossil fuel production led WTI and Brent futures prices being slightly lower. However, continued geopolitical tensions tempered the bearish sentiment in the crude oil futures market. The competitiveness of Henry Hub prices, which are used as the basis for long-term LNG purchase agreements, versus non-U.S. gas prices has helped to stimulate the surge in U.S. LNG exports. Some Indian importers are already securing long-term supply using Henry Hub prices. For example, Indian Oil Corp has signed a five-year LNG deal with Trafigura to lift 2.5 million metric tons of LNG priced on Henry Hub. NYMEX crude oil futures traders are eyeing upcoming Fed rate decisions, as monetary policy shifts can affect macroeconomic growth projections and indirectly crude demand. A dovish tilt could lift energy markets further.