Production cuts can't come soon enough for oil bulls
Risk assets are continuing to be hit today and oil isn't spared from the backlash seen across the board. WTI is now threatening a break of the $60.00 psychological level and a break below that would see it head towards support from the February low @ $58.07.
It's been one-way traffic for oil prices since peaking in early October and focus on Iran sanctions failed to help - more so with waivers given - provide any breathing room for bulls on the way down to current levels.
From a technical perspective, this has been a joy to trade but now with the $60.00 psychological level lurking nearby, it presents a fresh challenge for sellers to continue with the momentum to the downside.
Bear in mind that OPEC+ members are set to meet in Abu Dhabi this weekend and will be mulling over options to cut production. If more talks of that start surfacing, we could see it help underpin oil prices particularly when we are at an attractive area where shorts are likely to be covered/profit taking.
Update: Poof, and $60 is broken. A quick dip down to $59.83 now. This could turn much uglier as we close out the day.
