Crude Coming Off Two-Month HighPosted 11/22/2019 8:47AM CT |
Oil is coming off nearly a two month high following a range up upside breakout yesterday amidst continuing doubts of a partial trade deal between U.S.-China being made, which is weighing on global economic concerns. This comes following reports that OPEC and Russia are likely to extend production cuts until possibly mid 2020 following their meeting early December, with an emphasis on compliance from countries such as Iraq and Nigeria. The current arraignment is for a cut of 1.2 million bpd through the end of March. Weekly crude oil stocks came in on a 1.3-million barrel build, which was largely offset by the largest cushing decline since August. Given the aggressive rally in the last two consecutive sessions and the market now signaling immediate term overbought expect some corrective action in the near term with today’s range seen between 55.40 – 58.75.