Oil prices are being weighed down by investors concerns on whether OPEC's intended production cuts will come into play and how these will affect market sentiment and direction. However, today's OPEC meeting is still ongoing as the cartel is waiting to hear how much oil output Russia will cut before deciding its own reduction. OPEC may cut 1 million bpd if Russia is willing to contribute 150,000 bpd. Hence, OPEC+ may cut in excess of 1.3 million bpd if Russia cuts by around 250,000 bpd. OPEC and non-OPEC oil cuts are not likely to be larger than 1.4 million bpd.
The oil recovery ended as prices hit the key resistance level at $54.5 level triggering a sell-off as prices dropped all the way back to retest the $52 support level. The momentum has been slowing down and currently in decline as we can see on the chart but still not entirely bearish. However, even though the momentum is slowing down, the price is not printing new lows and is well supported in its current area that is why a rebound towards the $55 level is more likely to happen
Support: 50.86 / 50.17
Resistance: 51.98 / 52.53