WTI falls to a low of $58.33, nearing the low seen on 9 February at $58.07
All it takes is one tweet and that basically cancels out all the recent optimism surrounding possible production cuts by OPEC+ members. From the highs this year, oil is down by more than 24% and a bear market signature isn’t going to help with sentiment at this juncture.
A key technical break below the February low at $58.07 will pave the way for an even sharper fall towards the mid $50s first:
The 61.8 retracement level @ $55.36 will be the next key support level after the break above and that will be followed by a test of the $50 handle once again. I want to say that production cuts will eventually come in to underpin prices as we head into next year, but when you see a falling knife like this, never ever catch it.