Oil.WTI revisits $50 a barrel

Summary:

• More declines seen in the energy complex

• Oil.WTI down more than 2% to trade at $50/barrel

• Price remains not far from 13-month low of 49.44

It looks set to be another weekly decline for the price of crude with Oil.WTI on course to finish lower for the 8th week in a row! While the declines since Monday have been relatively small compared to previous weekly losses, the market is once more in the red on a W1 timeframe nonetheless. Price had attempted to recover after making what appeared to be a false break lower earlier this week, but Oil.WTI has revisited the $50 mark this afternoon and lows of 49.43 could now be seen as key support.

There’s been more selling seen in Oil.WTI today with the market dipping back near its weekly low of 49.43. Source: xStation

The reason behind today’s selling appears to be reports from Russia’s Tass news agency where the country’s energy minister has said that OPEC and its partner producers outside the cartel (including Russia) are comfortable with current oil price levels. The news signals that Russia could oppose a production cut when OPEC and its allies gather in Vienna next week and marks a complete reversal from reports yesterday that suggested Russian officials were likely to cut output in tandem with OPEC.

WTI is set to fall for the 8th week in a row which would be the second longest losing run on record. However, those hopeful of further declines should be wary of OPEC, with the organisation meeting in Vienna next week where they are expected to announce a cut in their production in an attempt to prop up the oil price. Whether this will be enough to stem the declines remains to be seen.    

Oil.WTI has seemingly respected the lows once more and if they can hold then a recovery may lie ahead. Fib retracements of the decline offer possible targets of rlongs or areas for shorts to enter with the 23.6% at 55.92 the first on the radar. Source: xStation