USOIL, H1 & Daily
USOIL prices are down over 2% at $51.20, extending a correction from yesterday’s four-session high at $52.52. The decline was in line with a slide in global stock markets amid persisting concerns about the global economy and trade tensions and then extended on the latest OPEC production report, which showed that production had fallen by the most in two years.
Production declined by 751,000 bpd in December, principally on the back of Saudi Arabia production cuts of 468,000 bpd. This is the most significant cut since early 2017. However, the issue of oversupply remains, as production for December from OPEC was 31.58 MILLION bpd.
The psychological $50.00 level sits at S3 and the key 20-day moving average down at $48.50.
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Stuart Cowell
Head Market Analyst
HotForex
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