Crude oil prices dipped lower on Monday and trade almost flat on Tuesday morning on oversupply concerns. WTI crude oil was trading at 50.59 as of 8:00 GMT.
According to a poll conducted by Reuters, the production by the OPEC countries rose by 50,000 barrels a day in September as the cartel’s overall agreement with its production-cut fell to 86%.
Production in Libya bounced back 30,000 barrels a day to 920,000 barrels in September as the Sharara field restarted after a halt of more than two weeks while Nigerian output increased by 20,000 barrels to 1.77 million barrels a day.
Technical View
Crude oil hourly chart has formed a “Rising Wedge Pattern”. Currently, the prices trade nearby support area at $ 50.40. A break of the support line could continue the selling pressure towards $49.
It is likely that prices bounce back to $50.80-51.20 which may be a selling opportunity. Note that in the 4H chart, crude oil prices are still trading in an upward channel.