WTI drops briefly below $46 mark amid risk-off, ahead of OPEC decision

• WTI weighed down by coronavirus-led broad market sell-off.
• OPEC+ cuts expectations keep the bulls hopeful.
• Next of relevance remains the OPEC+ decision and coronavirus news.

WTI (oil futures on NYMEX) extended declines and hit a fresh three-day low of 45.89 in the last minutes before rising back above the 46 handle. Despite the quick pullback, the US oil still remains 1.30% weaker on the day.

The black gold continues to trade in the red for the third consecutive session on Thursday, mainly hit by broad risk-aversion, as concerns over global economic growth due to the coronavirus outbreak intensify and risk affecting the demand for oil and its products.

Further, the barrel of WTI also remains weighed down by increased nervousness, ahead of the OPEC+ press conference on the decision to extend the oil output cuts to shore up the prices.

Earlier today, WTI spiked briefly above $ 47 mark on reports that the OPEC+ likely agreed on 1.5 million bpd output cut. However, the confirmation about the same is still due, keeping the bulls on the edge.

Kazakhstan Energy Minister Nurlan Nogayev said that the OPEC and non-OPEC oil producers have not yet reached consensus on the parameters of an extension on their oil output deal.

Rising US crude supplies and reduced demand for higher-yielding assets, in the wake of growing coronavirus risks, also collaborate with the bearish sentiment seen around the commodity.

Markets now look forward to the key OPEC+ decision and Baker Hughes US Oil Rigs Count data for fresh cues while the virus-related headlines will continue to play a pivotal role.

WTI technical levels to watch