The Brent crude price has fallen back from its mid-November high of 68.35. It looks like OPEC’s effort to curtail production can only achieve so much when global economic outlook darkens. In spite of a reduction of 1.2 million barrels per day (bpd), OPEC’s Saudi Arabia’s target price of $70 per barrel could become increasingly remote as concerns of soft demand overshadows supply tightening.
On the technical side, the price is testing bids around the 30-day moving average. A break could send the price towards 64.50. On the upside, 67 is the immediate resistance for the day.
The sentiment-price correlation chart shows investors’ mood dipping into the negative territory, which would suggest a reversal in the making.
