Oil steepens decline, WTI under $50 as oversupply looms
- Oil markets heave lower as US supply threatens to hit records across the board with no signs of slowing.
- OPEC+'s promised production cut is set to already be absorbed before it even begins.
Crude markets took a turn lower on Monday and WTI knocked below the critical 50.00 level as energies traders continue to balk at rising US oversupply.
OPEC+ recently dedicated itself to reducing oil production by 1.2 million barrels per day beginning in January, but crude traders see little reason to jump on the oil-bidding bandwagon anytime soon as US production continues to ramp up far above levels that crude demand can hope to absorb. WTI has shed more than 30% since the beginning of October, trading into 14-month lows as US inventories climb over the million barrel mark for a single week, while US shale production is expected to peak in the coming months at over 8 million barrels per day, and a crushing wave of US oversupply is hammering oil prices even lower heading into the year's end.
WTI Technical Levels
Today Last Price: 49.72
Today Daily change: 24 pips
Today Daily change %: 0.485%
Today Daily Open: 49.48
Previous Daily SMA20: 51.61
Previous Daily SMA50: 57.82
Previous Daily SMA100: 64.32
Previous Daily SMA200: 66.57
Previous Daily High: 52.16
Previous Daily Low: 49.36
Previous Weekly High: 53.48
Previous Weekly Low: 50.57
Previous Monthly High: 63.92
Previous Monthly Low: 49.64
Previous Daily Fibonacci 38.2%: 50.43
Previous Daily Fibonacci 61.8%: 51.09
Previous Daily Pivot Point S1: 48.51
Previous Daily Pivot Point S2: 47.53
Previous Daily Pivot Point S3: 45.71
Previous Daily Pivot Point R1: 51.31
Previous Daily Pivot Point R2: 53.13
Previous Daily Pivot Point R3: 54.11