WTI down 4%, breaches $ 51 on talks of smaller-than-expected OPEC output cuts

Oil prices sold-off into talks of smaller-than-expected OPEC output cuts, risk-aversion.
All eyes on the outcome of OPEC+ Vienna meeting and EIA crude fuel stockpiles.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) changed course and dropped more than $ 2 to hit fresh four-day lows just under the 51 handle, as the bears fought back control amid increased talks among the OPEC members of a smaller-than-expected output cut. The OPEC members are calling for a 1 million barrels per day (bpd) of output cuts as against the 1.3 million bpd cuts called on by Saudi Arabia earlier this week.

Moreover, the recent comments by the Saudi Arabian Energy Minister Al-Falih that no agreement is reached yet on the output cuts also added to the weight on the black gold. Further, the barrel of WTI also remains pressured by the risk-off trades on the European equity markets, as fresh US-China spat over the Chinese company, Huawei, CFO Meng dampens the overall market sentiment.

The updates from the OPEC meeting and its outcome on the output policy will dominate the oil-price movements in the day while the official US Government fuel stocks data published by the EIA could also offer some incentives to the oil traders.

WTI Technical Levels

WTI

Overview:
    Today Last Price: 51.37
    Today Daily change: -1.3e+2 pips
    Today Daily change %: -2.45%
    Today Daily Open: 52.66
Trends:
    Previous Daily SMA20: 53.48
    Previous Daily SMA50: 61.42
    Previous Daily SMA100: 65.63
    Previous Daily SMA200: 67.31
Levels:
    Previous Daily High: 53.19
    Previous Daily Low: 52.58
    Previous Weekly High: 52.13
    Previous Weekly Low: 49.64
    Previous Monthly High: 63.92
    Previous Monthly Low: 49.64
    Previous Daily Fibonacci 38.2%: 52.81
    Previous Daily Fibonacci 61.8%: 52.96
    Previous Daily Pivot Point S1: 52.43
    Previous Daily Pivot Point S2: 52.2
    Previous Daily Pivot Point S3: 51.82
    Previous Daily Pivot Point R1: 53.04
    Previous Daily Pivot Point R2: 53.42
    Previous Daily Pivot Point R3: 53.65

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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