WTI Crude oil prices continue to stabilize in the new week following its sharp 20% decline from the $63.84 high following the news of Saudi Arabian crude oil facilities been put offline on a drone attack on September 14.
OPEC, the Organization of the Petroleum Exporting Countries, declined the idea of adding to crude oil production when the price spiked, and they have so far been unwilling to curb output on the latest price slide.
On the wires this morning, OPEC’s Secretary-General, Mohammed Barkindo said to Russian news agency TASS, that it was too early for OPEC to discuss deeper crude oil output cuts despite the decline in crude oil prices. Hedge funds have, however, made changes to their positioning and they reduced their bullish crude oil bets according to the weekly COT report.
Technically, the price remains within the August low to July 12 high range of $50.59 – $60.80, and the price looks to turn higher and target the midpoint in the above-mentioned range at $55.55. Traders that are not already long will probably wait for a corrective decline to the $50 to $51.74 interval before turning bullish. On the price slipping below the August low of $50.59, the price might be able to decline to the next support level, the January 2 low of $47.24, followed by the December 18 low of $45.05.