Crude oil markets saw an attempt to stage a bullish recovery late Monday, but ongoing market pressures and worries of declining demand continue to keep crude barrels in a defensive posture. OPEC's planned attempt at a reduction in production levels beginning in January are running up against concerns that the 1.2 million barrel per day production decrease won't be enough to cope up with the supply coming out of the US who has opted to not follow with OPEC's plan.
Oil lost traction during yesterday's session and continue to do so this morning as prices failed to break above the $54 level. The price is currently hovering just below 51$ per barrel as the momentum is in decline mode and way far from oversold conditions. We believe that this consolidation in prices is done and that the $50 level will most probably be violated. We will be focusing on the $48.57 support level.
Support: 50.86 / 50.17
Resistance: 51.98 / 52.53