WTI oil trades within extended but limited consolidation on Tuesday, near the lowest level in past almost fourteen months ($50.09) and ticks ahead of psychological $50 support. Bears may take a breather before eventually breaking lower, in usual reaction on approach to key points, but strong negative sentiment and bearish techs remain intact and keep focus at the downside. The latest negative signal came from Saudi Arabia’s rise in oil production which reached all-time high in November, adding to negative outlook. Focus turns towards OPEC’s meeting next week, as the cartel is expected to confirm signals of reducing output as a step to stabilize oil market. This would put broader bears on hold, however, initial bullish signal could be expected on break above falling 10SMA ($54.26).
Res: 52.22, 52.76, 54.26, 54.80
Sup: 50.26, 50.00, 49.10, 46.99
