December 11, OctaFX – The price of crude oil declined in overnight trading as traders continued worrying that the cuts announced by OPEC will not go far enough to rebalance the market. The implication of this is that producers will continue overproducing and flooding the market with oil.
Traders are also starting to worry about the increased production from the United States. Early this year, the country passed Saudi Arabia and Russia to become the biggest oil producer. Last week, data from the EIA showed that the country had become a net oil exporter for the first time in decades.
Crude Oil Technical Forecast
After rising sharply yesterday, the price of crude oil declined in overnight trading as traders continued their worry about supply. The XTIUSD pair declined to 50.75.
On the four-hour chart, the pair’s price was below the 50-day and 25-day EMA while the RSI has moved to a low of 43. This is lower than the 60 level it was before. The pair’s price will likely continue to wait for inventory data, which will be released later today.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.