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  • Oil seeing refreshed selling interest as Saudi barrel production continues to rise.
  • Over-stuffed global oil markets see little possibility for a sustained bullish correction as barrels continue to pour out of major producers faster than demand can absorb.

Crude prices remain overly cautious after Saudi Arabian oil production hit record highs in November, and attempts to mount a bullish correction after seven straight weeks of declines continue to run into hard selling walls.

Saudi Arabia is reported to have hit oil production in the neighborhood of 11.1 to 11.3 million barrels per day, sweeping the legs out from underneath crude traders who tentatively began bidding  barrels prices higher after a surprise drawdown in US stocks. US crude production similarly remains near all-time highs, and the steady oversupply glut across the globe is seeing broader energy markets firmly restrained.

OPEC is expected to take further measures to rein in the current price collapse, and the crude cartel will be meeting on December  6th, where production limits are expected to be the main topic of discussion.  

“If OPEC plus Russia cannot send a very strong message to the market, prices are poised to fall further, perhaps to Brent $50 per barrel and WTI of $40 per barrel or less. The message must be decisive, firm, and the front must look fully united, to have any chance of slowly reversing the trend.” –  Fereidun Fesharaki, chairman of energy consultancy FGE

WTI Technical Levels

WTI

Overview:
       Today Last Price:  51.29
       Today Daily change:  -27  pips
       Today Daily change %:  -0.524%
       Today Daily Open:  51.56
Trends:
       Previous Daily SMA20:  57.17
       Previous Daily SMA50:  65.06
       Previous Daily SMA100:  66.92
       Previous Daily SMA200:  67.86
Levels:
       Previous Daily High:  51.67
       Previous Daily Low:  51.41
       Previous Weekly High:  57.42
       Previous Weekly Low:  50.13
       Previous Monthly High:  76.25
       Previous Monthly Low:  64.86
       Previous Daily Fibonacci 38.2%:  51.57
       Previous Daily Fibonacci 61.8%:  51.51
       Previous Daily Pivot Point S1:  51.42
       Previous Daily Pivot Point S2:  51.29
       Previous Daily Pivot Point S3:  51.16
       Previous Daily Pivot Point R1:  51.68
       Previous Daily Pivot Point R2:  51.81
       Previous Daily Pivot Point R3:  51.94