Oil prices tumble again today on news that Saudi Arabia is eyeing OPEC+ production increase, partially reversing the group’s decision to cut supplies last month.
WSJ reports that OPEC is now in discussion of an increase of up to 500k barrels a day, for December 4 meeting. The move would come just a day before EU imposes an embargo on Russian oil, while G7 will launch a price cap.
Technically, WTI is now on track to retest 76.61 low. Decisive break there will resume larger down trend. Next target will be 61.8% projection of 124.12 to 76.61 from 94.25 at 64.88. Meanwhile, break of 82.03 minor resistance will delay the bearish case and bring recovery first.
