WTI crude oil is back in red, despite the OPEC and some non-affiliated suppliers agreeing to a supply cut from January. Here’s what going on in the market:

In case you missed the OPEC meeting outcome, the black gold mounted after the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia agreed to cut oil supply by 1.2 million barrels per day (bpd), with an 800K (bpd) reduction planned by OPEC and 400K bpd by nations outside OPEC membership.

However, the global economic outlook remains weaker. For instance, the Japanese economy revised its third-quarter GDP growth downward to an annualized rate of minus 2.5%, down from the initial estimate of minus 1.2%. Being the world’s No. 4 oil consumer, Japanese economic slowdown matters to the crude oil markets.

Crude oil has slipped below the psychological support area of $52 to trade near $51.60. Thing is, crude prices have crossed below 20 & 50 periods EMA at $52.50, signaling a strong bearish bias of investors.
The immediate support prevails at $51.65 and below this, oil can go after $50.85. On the upper side, $52.60 is likely to be a strong hurdle today.