WTI is down by more than 2% currently
Oil prices are off the lows for the day but are still lingering near the doldrums as we move towards European trading in a couple of hours. There wasn’t any particular headline to drive the move here but this owes more to sentiment, which as of late hasn’t been too great.
The technical picture itself lends a valid reason to stay bearish on oil but also the fact that there isn’t any real conviction by OPEC+ nations so far to really push for higher production cuts as we head into the meeting in Vienna on 6 December. Saudi Arabia has touted cuts of about 1 million bpd and rumour has it that we may see a 1.4 million bpd cut instead.
But so far, there’s no real backing to it since the start of last week. That’s not a sign of confidence and it also shows that there is some element of indecision about how much producers are willing to cut as the US continues to pump more oil into the market.
Add to the fact that Trump is also looking to meddle into affairs here and continuing to call for lower oil prices, it’s making for some uneasiness among OPEC+ producers to pursue further cuts surely.
From the chart itself, WTI looks to be leaning on support from the September 2017 high @ $52.86 once again. Should that level give way, a move towards $50 per barrel will be very much on the cards.
In the meantime, be wary of headline risks that could come about on rumoured production cuts and what not ahead of the OPEC+ meeting on 6 December.