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

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