Oil has been trading under significant pressure since OPEC+ meeting last Thursday (November 30, 2023). While oil producers announce a deeper output cuts, details of the deal showed that they will be voluntarily and this has caused a concern where they will be actually delivered. Oil prices are on their way to book fifth straight daily decline with Brent (OIL) and WTI (OIL.WTI) trading over 3% lower on the day.
Both major oil benchmarks broke below key levels today - Brent dropped below $75 per barrel, while WTI moved below $70 per barrel for the first time since the turn of June and July 2023. Taking a look at OIL.WTI chart at D1 interval, we can see that prices began to slump after repeated, failed attempts to break above the $78.50 zone, marked with 200-session moving average (purple line) and previous price reactions. Commodity dropped by over-12% from an intraday high reached on OPEC+ meeting date (orange circle). Given how quick and steep the drop was, one cannot rule out an upward correction driven by profit taking. On the other hand, technical picture remains bearish with the $67.50 area being the first major support zone to watch.
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