Oil steepens decline, WTI under $50 as oversupply looms

Oil markets heave lower as US supply threatens to hit records across the board with no signs of slowing.
OPEC+'s promised production cut is set to already be absorbed before it even begins.

Joshua Gibson FXStreet

Crude markets took a turn lower on Monday and WTI knocked below the critical 50.00 level as energies traders continue to balk at rising US oversupply.

OPEC+ recently dedicated itself to reducing oil production by 1.2 million barrels per day beginning in January, but crude traders see little reason to jump on the oil-bidding bandwagon anytime soon as US production continues to ramp up far above levels that crude demand can hope to absorb. WTI has shed more than 30% since the beginning of October, trading into 14-month lows as US inventories climb over the million barrel mark for a single week, while US shale production is expected to peak in the coming months at over 8 million barrels per day, and a crushing wave of US oversupply is hammering oil prices even lower heading into the year's end.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 49.72
    Today Daily change: 24 pips
    Today Daily change %: 0.485%
    Today Daily Open: 49.48
Trends:
    Previous Daily SMA20: 51.61
    Previous Daily SMA50: 57.82
    Previous Daily SMA100: 64.32
    Previous Daily SMA200: 66.57
Levels:
    Previous Daily High: 52.16
    Previous Daily Low: 49.36
    Previous Weekly High: 53.48
    Previous Weekly Low: 50.57
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 50.43
    Previous Daily Fibonacci 61.8%: 51.09
    Previous Daily Pivot Point S1: 48.51
    Previous Daily Pivot Point S2: 47.53
    Previous Daily Pivot Point S3: 45.71
    Previous Daily Pivot Point R1: 51.31
    Previous Daily Pivot Point R2: 53.13
    Previous Daily Pivot Point R3: 54.11

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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