Oil Stuck Below $50.00 Ahead of This Week's OPEC Meeting
WTI crude oil futures remained stuck below $50.00 psychological mark, within a narrow trading band, as investors look ahead to this week's major event, OPEC biannual meeting on June 2.
At the time of writing, oil was trading down by 0.4% at $49.35, reversing from Asian session uptick to $49.73.
Analysts' are not expecting any formal agreement on curtailing production from this week's OPEC meeting in Vienna. In the meantime, investors will focus on developments surrounding resumption of oil production from Canada and ongoing supply disruption in Africa.
Ahead of the Thursday's OPEC meeting, focus would remain on Tuesday's weekly stockpiles data from API and the EIA weekly inventory report on Wednesday. Investors will also focus on economic releases from the US in order to gauge the possibilities and timing of a Fed rate-hike, which would eventually boost the greenback and diminish demand for dollar-denominated commodities, like oil.
Technical levels to watch
Below $49.00 round figure mark, the commodity seems to immediately drift towards $48.65-60 support, which if broken convincingly seems to accelerate the downfall towards its next major support near $47.80-75 region.
Alternatively, on a sustained trade above $49.70 resistance, the commodity seems all set to make a dart back above $50.00 handle, which if conquered decisively seems to boost it further towards Oct. 2015 highs resistance near $51.35-40 region.