Crude oil-retesting support
Crude prices are softer again this morning, with the market continuing with the weakness we saw in the latter half of last week. Yesterday, meetings between OPEC and OPEC+ members concluded much as expected, with the groups agreeing to extend their existing production cuts into next year. The extended output cuts include those voluntary ones agreed by Saudi Arabia and Russia. Oil producing countries remain concerned about the outlook for future demand growth, particularly as expectations for rate cuts from the US Federal Reserve have been pushed back significantly since the beginning of this year. Both Brent and WTI are retesting the lows hit just over a week ago with prices back to levels from which they rallied sharply. As far as front-month WTI is concerned, that saw crude jump from just above $76.00 to just under $80.50 in the space of four trading days. Will history repeat, or will prices break down further from current levels?
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