Oil faces a tough start to the week, trades at 2-month lows

Technical Analysis

Author: Justin Low | wti

WTI is down 2% on the day to $63.73, touching its lowest levels since April

It's a big week for oil with all the focus set on the OPEC and non-OPEC meetings in Vienna. Here's a calendar of events in case you missed it earlier.

From a technical perspective, price has fallen under the 100-day MA (red line) and that should be a big win for sellers as the start of trading today looks to hold a break of that. But in a week like this, headlines mean everything (if not at the very least, it means a lot).

It's all going to come down to the agreements made on the OPEC+ agreement with regards to the oil output and until now there is no clear consensus yet.

The market is still generally expecting an easing of the oil output cuts (which means more oil back to the market) but weekend news here showed that not all is set in stone when it comes to such an agreement.

While the smaller OPEC nations are more worried about prices and the bottom-line of their economy, Saudi Arabia and Russia will be more concerned about how continuous oil output cuts will affect their market share globally.

It's setting up for one of the more interesting meetings between participants of the OPEC+ agreement, and so far the market isn't keen on riding through any risks of that with oil trading lower.

The next key support area to look out for will be the April low @ $61.81.

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