- WTI retreats sub-past week low, but bounces.
- OPEC monthly report forecasts increased demand next year.
Crude oil prices slid lower mid-US session, breaking through last week's lows. West Texas Intermediate crude oil futures are down to $56.46 a barrel, while Brent trades a few cents below $63.00 a barrel, with no particular catalyst behind the slide. In fact, market's news were generally encouraging this Monday, as the OPEC's monthly report showed that producers expect an increased demand for its oil in 2018, while pledged to maintain cuts. According to the organization, the world would need 33.42M bpd all through next year, up 360,000 bpd from its previous forecast. OPEC producers and its allies will meet next November 30th to review their ongoing output deal.
US crude traded as low as 56.29 before bouncing modestly, looking anyway bearish in the short term, as its hovering at the lower end of last week's range, after hitting a two-year high of 57.90 last Thursday. The dominant bullish trend have been losing upward momentum, although at this point, the retracement seems just corrective, as the price of a barrel retreated around two bucks after rising roughly nine since early October. The mentioned daily low is the immediate support ahead of 55.64, November 6th low, followed by the 55.00 threshold. A bullish extension could be expected only on a break above 57.90, with the market then aiming for the 60.00 mark.
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