Crude oil fell on Monday despite Libya’s production remaining under threat and regardless of tightening supplies. Russia’s minister, Anton Siluanov, hinted at a market share fight between Russia and OPEC, against the United States. The Russian finance minister’s comments indicated that the production cut deal may be abandoned in order to allow prices to fall. That would “shrink” American output.
Oil Could Correct, But No one Knows Where To
The prices of crude oil also saw a rejection near a psychological level. Bears stepped in just before the $65 per barrel barrier and caused a short-term correction that could lead prices further down. In the unlikely scenario that the middle trendline (red) holds, WTI would most likely move higher either for a double top of continuation of the bullish trend. However, a slide down to the lower trendline of the ascending channel (grey) is also possible in the short-term.
