Yesterday, Crude Oil prices advanced and closed the day higher, posting the highest level since the beginning of this month.
The rally, of course, is supported by a lot of remarks by many of oil producers (OPEC and Non-OPEC) regarding the highly possible deal, which should be announced later today.
According to the latest news, there is a possibility to extend the output cut deal for 9 to 12 months instead of 6 months.
Crude Tumbles Today
Despite all the talks about a possible deal to extend the agreement for more than six months, Crude prices tumbled by almost 2% after they were higher by around 1% during the Asian session.
Brent declined all the way back from its intraday high at 54.60 to as low as 53.30, while WTI Crude fell off a cliff from 51.97 session high to 50.30 session low.
There is no big reason for such decline so far, the only headline that might have a negative effect is that Iraq Oil exports with Kurdistan are 3.92M barrels per day.
Yet, this is not enough for Crude to decline that much in a very short period of time. The coming hours will give us more clues and more info.
What To Expect Today?
Once again, we would like to remind traders that most of the extension deal is priced in. The extension talks have been on the market for more than six months now.
Read more: https://www.orbex.com/blog/2017/05/crude-tumbled-ahead-opec-meeting/