- West Texas Intermediate crude on the back foot.
- Saudis may have a hard time convincing other OPEC+ members to deepen their cuts.
West Texas Intermediate, (WTI), ended -0.7% lower on Friday, printing a low of $53.34 for the day. In Asia, the markets are quiet, in anticipation of Brexit noise on an otherwise quiet data calendar.
In recent days, traders have factored in the slower Chinese economic growth which created more worries about weaker demand for oil. WTI futures fell by 15 cents, or 0.3%, to settle at $53.78 a barrel on the New York Mercantile Exchange, posting a 1.7% weekly decline.
Eyes look to OPEC
On energy markets, analysts at TD Securities has this to say, "Everything must come up aces to keep crude afloat. With a steep surplus on the horizon, crude markets remain comfortable looking past tanker war fears, supply disruptions (both structural and temporary) and boiling geopolitical tensions." Additionally, the analysts remain concerned that the "Saudis may have a hard time convincing other OPEC+ members to deepen their cuts, when they meet in December."
The GMMAs remain bearish and WTI remains below the 50 and 21-day moving averages, with bulls losing sight of the 57 handle around the 200 DMA. Bears will seek a break below the 50 handle which will bring the prospects of a run down to the Nov 2018 lows at 49.39 again. the 46.90 level ahead of the 18th Dec lows down at 45.77 will then be in focus.
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