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The initial headlines coming out of the OPEC meeting in Abu Dhabi that Saudi Arabia has committed itself to lower production output should be enough to prevent the value of Oil from falling any further, at least for now. This meeting is still ongoing and not scheduled to conclude until later on Monday, but it does appear at least on headline that the consensus is that the price of Oil would benefit from less supply heading into 2019.

We do feel that the Oil markets will be at risk to volatility as financial markets become more aware over the potentiality of a slowdown in the global economy next year, and that a reduction in Oil supply next year would be appropriate with the risks of lower economic growth.

The price of Oil remaining roughly around $70 in Brent Crude and $60 in West Texas Intermediate and consolidating around these levels would be appropriate in the greater scheme of things, considering the ongoing external uncertainties around trade tensions and pressures in emerging markets that are seen as large risks for slowing global growth.

If there are concerns over a potential economic downturn, then it is only natural that there will be concerns over demand for commodities like Oil, which is why its current valuation today can be considered as appropriate for where we currently are with the global economy.

Pivot (invalidation): 2816.50

Our preference Short positions below 2816.50 with targets at 2739.00 & 2700.00 in extension.

Alternative scenario Above 2816.50 look for further upside with 2845.00 & 2875.00 as targets.

Comment The RSI is bearish and calls for further downside.

Pivot (invalidation): 11420.00

Our preference Long positions above 11420.00 with targets at 11590.00 & 11660.00 in extension.

Alternative scenario Below 11420.00 look for further downside with 11290.00 & 11210.00 as targets.

Comment Technically the RSI is above its neutrality area at 50.

Pivot (invalidation): 5.4950

Our preference Short positions below 5.4950 with targets at 5.4450 & 5.4100 in extension.

Alternative scenario Above 5.4950 look for further upside with 5.5300 & 5.5620 as targets.

Comment The RSI lacks upward momentum.

Pivot (invalidation): 0.7250

Our preference Short positions below 0.7250 with targets at 0.7215 & 0.7200 in extension.

Alternative scenario Above 0.7250 look for further upside with 0.7265 & 0.7275 as targets.

Comment A break below 0.7215 would trigger a drop towards 0.7200.

Pivot (invalidation): 1.3200

Our preference Short positions below 1.3200 with targets at 1.3170 & 1.3155 in extension.

Alternative scenario Above 1.3200 look for further upside with 1.3215 & 1.3230 as targets.

Comment The RSI calls for a new downleg.

Pivot (invalidation): 1.0045

Our preference Long positions above 1.0045 with targets at 1.0070 & 1.0090 in extension.

Alternative scenario Below 1.0045 look for further downside with 1.0030 & 1.0010 as targets.

Comment The RSI has just landed on its neutrality area at 50% and is turning up.

Pivot (invalidation): 113.70

Our preference Long positions above 113.70 with targets at 114.10 & 114.40 in extension.

Alternative scenario Below 113.70 look for further downside with 113.50 & 113.30 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 1.2985

Our preference Short positions below 1.2985 with targets at 1.2900 & 1.2860 in extension.

Alternative scenario Above 1.2985 look for further upside with 1.3050 & 1.3090 as targets.

Comment The RSI has broken down its 30 level.

Pivot (invalidation): 1.1360

Our preference Short positions below 1.1360 with targets at 1.1300 & 1.1275 in extension.

Alternative scenario Above 1.1360 look for further upside with 1.1390 & 1.1420 as targets.

Comment A break below 1.1300 would trigger a drop towards 1.1275.