Crude oil markets have been largely unsuccessful in generating upwards momentum, as prices remain constrained between $50 and $52 per barrel. Traders remain cautious about the US oversupply as EIA's Crude inventories printed 1.8M barrels more than expected. Despite recent commitments by OPEC+ to engage in production cuts of 1.2M barrels per day beginning in January, the market does not seem that the oil cartel can pull it off with the US refusing to engage with production limits.
Oil prices are still trading sideways after recovering from last week's lows of $49.3 per barrel as they remain limited between $50 and $52 per barrel. The prices are hovering just above the lower band presented on the chart with a relatively bearish momentum. Once this pattern is violated to the downside, it will confirm the continuation of the downward move, hence, we will be watching closely near support level.
Support: 50.86 / 50.17
Resistance: 51.98 / 52.53