WTI recovery loses steam as Trump voices his opposition against OPEC cuts
- Saudi Arabia points at more output cuts to balance the market.
- US President Trump tweets out his opposition to additional supply reduction.
Crude oil staged a modest recovery earlier today following Saudi Arabia's Energy Minister Khalid al-Falih comments about OPEC+ looking into an additional supply cut of around one million barrels per day and the barrel of West Texas Intermediate rose above $61. However, with US President Donald Trump responding to this development, the barrel of WTI reversed its course and dipped below the critical $60 mark. As of writing, the WTI was trading around 80 cents above Friday's closing level at $60.10.
"Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" Trump tweeted out in the last hour.
Earlier today, Saudi Arabia's al-Falih explained that their technical assessment suggested that they could cut OPEC+ oil output by around one million barrels per day from October peaks. Moreover, OPEC Secretary-General Mohammad Barkindo argued that the oil market would be in balance in the last quarter of 2018.
Later this week, markets will be paying a close attention to OPEC's and the IEA's monthly reports on the global demand & supply forecasts as well as the API's and the EIA's weekly inventory data.
Technical levels to consider
With a daily close below $60 (psychological level), the WTI could extend its losses $59.20 (Nov. 9 low) and $58.20 (Feb. 14 low). On the upside, resistances are located at $61.25 (daily high) ahead of $62.40 (Nov. 8 high) and $63.30 (Nov. 6 high).