Technical Analysis

Oil drop nears 5% on OPEC worries

Rough day for crude oil

Fears that Russia will block an OPEC+ quota extension have hammered oil prices today. WTI is now down $4.27, or 4.75%, to $55.35.

The drop puts crude in-line for the second-lowest close of the month and puts the market on eggshells ahead of the December 5 OPEC meeting in Vienna.

Technically the damage isn’t too bad but if $54.76 (the Nov 20 low) gives way it could really open the floodgates. Next week should be interesting.


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