Oil markets remain uneasy, WTI slipping to $51.00 again

Crude prices remain overly cautious after Saudi Arabian oil production hit record highs in November, and attempts to mount a bullish correction after seven straight weeks of declines continue to run into hard selling walls.

Saudi Arabia is reported to have hit oil production in the neighborhood of 11.1 to 11.3 million barrels per day, sweeping the legs out from underneath crude traders who tentatively began bidding barrels prices higher after a surprise drawdown in US stocks. US crude production similarly remains near all-time highs, and the steady oversupply glut across the globe is seeing broader energy markets firmly restrained.

OPEC is expected to take further measures to rein in the current price collapse, and the crude cartel will be meeting on December 6th, where production limits are expected to be the main topic of discussion. 

“If OPEC plus Russia cannot send a very strong message to the market, prices are poised to fall further, perhaps to Brent $50 per barrel and WTI of $40 per barrel or less. The message must be decisive, firm, and the front must look fully united, to have any chance of slowly reversing the trend.” - Fereidun Fesharaki, chairman of energy consultancy FGE

WTI Technical Levels