WTI oil forms Doji candle even though OPEC and Russia agree to deepen cuts

WTI oil on Thursday witnessed two-way business and ended on a flat note, forming a Doji candle, despite the Organization of the Petroleum Exporting Countries (OPEC) and Russia agreeing to make further small cuts in oil production.

The cartel and Russia decided to deepen the existing 1.2 million barrels per day cut in output by additional 500,000 barrels per day through the end of March 2020. 

OPEC is likely to make an official announcement on Friday. 

So far, the decision to deepen cuts has done little to boost prices, possibly because investors are worried producers may not abide by the agreement.      

WTI crude is currently trading in the red at $58.27 per barrel, having hit a high of $59.10 in the overnight trade. 

As noted earlier, WTI formed a Doji candle on Thursday. A Doji is usually considered a sign of indecision (bull-bear stalemate) in the market place.

In this case, however, the candle has appeared following a notable rally from October lows near $51.00 and represents bullish exhaustion. 

As a result, the black gold may feel the pull of gravity during the day ahead. While WTI is flashing marginal losses, Brent is trading at $63.14, representing a 0.24% drop on the day.