The rally in crude oil prices took a pause on Thursday. OPEC said that its 2019 production forecast from non-OPEC will slow. Supply is expected to fall by 95,000 BPD for 2019. The prospect of a weakening global economy is also expected to dampen demand. The oil cartel also said that it expects the same levels of demand to continue into 2021.

Will Crude Oil Correct Lower?

After strong gains earlier this week, oil prices have stalled just below the 61.00 handle. This puts the range within the 61.00 and 57.50 levels for oil price. A breakout from this level will signal the next leg in the direction of the commodity. Further gains can be expected on a strong close above the 61.00 handle. Alternatively, a close below 57.50 will trigger further declines that could see a test of the 54.00 handle.

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