Crude oil prices gave up some of the gains by Friday’s close. This comes ahead of the two-day OPEC meeting that starts today in Vienna, Austria. Some news reports indicate that OPEC will continue with its existing production cuts. Both Venezuela and Iran are currently cut off from the international oil markets due to the US-led sanctions. This raises concerns of a potential shortfall in OPEC production.
Will Crude Oil Correct Lower?
The current declines in crude oil remain somewhat muted compared to the price action over the past week. Still, the technical outlook remains somewhat bearish in the short term. If oil prices break down below the 57.50 level where support is likely to be formed, further declines could come. Alternately, to the upside, a continuation will see oil prices rising to test the $60 handle.
