Oil second-guessing, WTI on hold near $50.50 as OPEC cuts get pushed further out

• Energy traders are getting worn out as bearish pressure remains a factor on crude barrel costs.
• Saudi Arabia is threatening to axe any plans for production limits unless more OPEC leaders show support.

Crude oil prices set out to make a recovery in early Thursday trading following a dovish Federal Reserve chair Jerome Powell, who sent the US Dollar and its related assets into a tailspin on overly cautious rate hike sentiment.

WTI started the early overnight session lifting from Wednesday’s late low at the critical 50.00 handle, but bullish sentiment is again coming under pressure after Saudi Arabia backed down off of its intention to cut supply figures unless they have help from the rest of OPEC.

Following crude oil’s recent decline, Saudi Arabia initially floated the idea of stiff production cuts in an effort to get barrel prices supported, a move that was initially supported by key members of OPEC. Russia and Nigeria stated on Wednesday, however, that it may be too soon to signal whether or not they would be joining any proposed production cuts, prompting Saudi Arabia’s Energy Minister Khalid al-Falih to warn that they will not be undertaking any limit increases without the involvement of other OPEC countries.

“Everybody is longing (to) reach a decision that brings stability back to the market … I think people know that leaving the market to its own devices with no clarity and no collective decision to balance the market is not helping.” – Saudi Energy Minister Khalid al-Falih

WTI Technical Levels