Oil Prices Trade in Range Below $70 As OPEC Discusses Postponing Output Increase
Oil prices have been consolidating in a range below $70 and attempts to push above this level have failed, despite OPEC delaying the output hike, as comments today indicate.
After opening with a bullish gap, oil prices climbed above $71 on Monday. However, the ceasefire between Israel and Lebanon quickly removed the geopolitical risk premium embedded in crude prices, causing WTI to slide 3% and drop back below $70. Despite a significant inventory drawdown reported by the EIA earlier this week, bearish sentiment has remained dominant, and prices have failed to regain upward momentum.
WTI crude remains constrained within a bearish trend, with a descending trendline capping any attempts to rise above the $70 mark. Last week’s high of $71.21 serves as a key point of resistance, while additional resistance levels can be found at $69.30, $70.00, and $70.30. On the downside, immediate support is located at $68.00, followed by $67.30 and $66.50. Notably, a potential double-bottom pattern could form around the $66.50 level if bearish pressure intensifies.
WTI Oil Chart H4 – The Range Continues
The market’s inability to hold above $70 underscores the prevailing weak sentiment, leading traders to fade any geopolitical risk premium previously priced into crude. Adding to this, comments from Reuters today highlighted ongoing discussions within OPEC regarding delays in output decisions. While there is speculation about extending cuts through Q1 or even all of H1, these discussions are not new and have failed to provide any meaningful lift to oil prices.
Overall, the bearish tone persists, weighed down by supply-demand imbalances and broader macroeconomic concerns. The market continues to react with skepticism to OPEC-related chatter, as the fundamentals offer little support for a sustained recovery in crude prices.
Key Updates on the OPEC+ Meeting (via Reuters):
- The OPEC+ meeting, initially set for Sunday, has been postponed to December 5.
- Discussions are ongoing regarding delaying the planned production hike for Q1 2025.
- Further talks are expected in the coming days to finalize decisions.
- The scheduled output increase for January remains a critical issue under consideration.
WTI Live Chart
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