Oil prices dive again at yesterday’s session, as hopes faded for a deal between oil-producing nations to control the supply.
Foreign media quoted OPEC officials: Most OPEC members are now opposed to the convening of an emergency meeting.
CNBC reports that an OPEC official told a Saudi Arabian newspaper it was “too early” for an emergency meeting on coordinated supply cuts, as Russian officials had claimed was in the offing last week. The cartel is riven with disputes and it is highly likely that Iran’s return to the global export market will prevent the Saudi-led bloc from reaching an accord, let alone reach out to non-OPEC members.
“There’s nothing that says prices have bottomed — supply is still greater than demand by a lot, Chinese demand may be slackening, the global economy may be slackening and the likelihood of an OPEC emergency meeting seems very low, as it did last week.”
At yesterday’s article, we recommend selling below 30.90 targets at 30.50, 30.15 and 29.50 levels. As of now the oil made a low at 29.56.
In the four-hour chart, the parallel support finds at 29.23 rounded to 29.20 and 161.8 FE finds at 29.10. If the price fell below these, another round of panic selling towards 29.00, 28.50 and 28.35 levels.