Oil turns lower as skepticism over ‘output freeze’ arises

By FXStreet Crude oil prices surged early Tuesday, with WTI futures reaching $31.36 a barrel during the London session, but reversed course after the announcement of an agreement reached between Saudi Arabia, Russia, Qatar and Venezuela to freeze oil output at January level.

However, skepticism grew over the hours, as the market considered the decision purely symbolic, given that worldwide production stands at record highs, and that a freeze will do little against the global glut that pushed the price lower during this last year.

US crude fell towards $29.00, and remains around this level by the end of the day, having erased half of its recent gains.

WTI technical view

“Technically, the daily chart shows that the price was unable to advance beyond its 20 SMA while the technical indicators have resumed their declines below their mid-lines, favoring the downside for this Wednesday”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have turned sharply lower from overbought levels and they are currently around their mid-lines, while the price is hovering around a bullish 20 SMA, which suggest a break below 28.70, the immediate support, is required to confirm further slides”.

Support levels: 28.70 27.90 27.20. …read more

Source:: FX Street