WTI collapses 6% and drops below $56.00
|- Crude oil accelerates slide. Since the beginning of the month lost 15%.
- WTI bottomed at $55.75 today, lowest since December 2017.
WTI (oil futures on NYMEX) is falling more than 6% on Tuesday amid a sharp sell-off. Over supplied concerns and the increase in the production from non-Opec continue to weigh on crude oil. The price has fallen practically on every single day in November. From the October peak at $76.90, lost 27% of its value.
Another factor behind the slide was US dollar strength but today the greenback is not the top performer and the decline in crude oil accelerated. The sharp slide could trigger speculations about a production cut from the Opec when it meets in December.
Technical outlook
Most technical indicators in the short and medium term are showing extreme oversold readings but the negative tone is still strong and there are no signals of a correction. At the moment, trades at $55.75, at the low after the last intraday rebound was also short-lived. The intense selling pressure remains intact. Support levels could be seen at $55.00 and $54.30. On the upside, now the $56.00 area is the immediate resistance followed $57.00 by $58.10.
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