If you look at Crude Oil charts, including Brent and WTI whether on the daily or the hourly chart, you can definitely see that nothing has improved. It’s actually getting worse.
Since the decision of OPEC last week to extend December’s deal for nine months, the prices have lost more than 3% and still sliding. Brent is close to $50 barrier while WTI Crude is trading below $49.
Why Crude Declines Despite OPEC Meeting?
Once again I would like to remind traders that most of the extension deal has been priced in in the markets.
The talks about an extension have been on the market since January, as the prices were declining even after December deal, as December decision has been also priced in for more than six months.
Producers Are Active Again
As we noted many times in our previous reports, expect OPEC and Non-OPEC members will be very active through the media especially if Oil prices did not react positively to the latest decision.
Indeed, the prices kept on declining further, leading OPEC and Non-OPEC members to come out and talk about what might happen after the recent deal expires in March of next year.
The new information for the market from all the producers is that all the producers are ready to cooperate with each other even after the deal expires in March of next year.
Yet, the prices are still in a downtrend and likely to accelerate in the coming days and weeks.
When Crude Oil May Rally?
Read more: https://www.orbex.com/blog/2017/06/when-will-crude-oil-rally-opec-output-cuts/