Oil weak-footed, WTI hobbled beneath $51.50

Crude markets continue to trade towards the downside as investors remain unconvinced about impending OPEC+ production cuts as the US continues to overproduce crude barrels at an incredible rate, and the broader market remains well-supplied with a glut of barrels stuffing into supply lines much faster than demand can hope to eat them up.

Despite OPEC+'s agreement to cut oil production by 1.2 million barrels per day, energies markets are waiting to see if the strategic reduction will have an effect on broader markets. Coupling that with broad-market fears of an economic slowdown, and oil prices are likely to remain capped in the near-term as declining economic activity would only further exacerbate demand's inability to rise above current production levels.

WTI crude has remained tepid for the better part of four weeks, strapped to the 51.00-53.00 region as energy traders await bigger changes to the current production balance in crude markets.

WTI Technical Levels