WTI remains confined in a tight range near $57 mark

Low risk-appetite on Monday hurts the demand for commodities.
Expectations over OPEC/non-OPEC output cut deal extension remains as the primary catalyst.

Eren Sengezer FXStreet

Crude oil prices are struggling to find direction on Monday with the barrel of West Texas Intermediate moving sideways in a narrow band near the $57 handle. At the moment, the barrel of WTI is trading at $56.95, up 20 cents, or 0.4%, on the day.

Earlier in the session, OPEC Secretary General Mohammed Barkindo said that global cuts were the only viable option to restore the stability in the oil market. Barkindo further added that the global oil demand remained robust. Moreover, Omani Oil Minister told reporters that he was confident that OPEC would extend the output cut deal until the end of 2018. Moreover, the latest monthly data released by OPEC revealed that the production in Venezuela dropped to its lowest level in nearly 30 years at 1.955 million bpd in October.

Nevertheless, none of these headlines allowed the barrel of WTI to extend its rally as a negative market sentiment on Monday kept the investors away from highly volatile assets.

Technical levels to consider

A daily close above $57 (psychological level) could allow for further gains toward $57.90 (Nov. 8 high) and $59 (Jul. 1 2015 high). On the downside, supports could be seen at $56.40 (Nov. 8 low), $55 (psychological level) and $54 (20-DMA).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.