Crude Oil Slips Before OPEC Meeting; E.U. CPI in Focus; GBP/USD Profit Locked

The OPEC meeting will hog the limelight today as the WTI crude oil is losing more ground after the sharp buying interest. Sterling traded higher and the GBP/USD pair posted a new two-month high above our suggested target. Meanwhile, the U.S. dollar announced the preliminary GDP Q3 yesterday, while the Euro is awaiting the preliminary CPI today.
The spotlight of the day is the Organization of the Petroleum Exporting Countries (OPEC) meeting as OPEC and Russia are going to extend supply cuts until the end of 2018. Meanwhile, they may review the deal in June if the market overheats. OPEC and non-OPEC oil producers including Saudi Arabia and Russia met in Vienna on Wednesday – one day before the meeting – and suggested the extension of the cut as it expires in March. Brent crude oil is ready to complete the fifth positive month in a row while West Texas Intermediate (WTI) is posting the third consecutive bullish month, despite the last days’ weakness.
WTI Crude Oil – Technical Outlook
The West Texas Intermediate Crude oil is moving lower over the last four days after it hit a more than two-year high at $58.93. During the week before, the price had an aggressive bullish run as it soared more than 6% in just one week. The bounce off the latter level drove the oil sharply lower, losing more than 2.5% from its performance. The next level to focus on is the $55.00 support barrier, which overlaps with the 23.6% Fibonacci retracement level with low at $42.10 and high at $58.93.

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