Oil prices slid to a three-week low on Friday, closing near $67 a barrel, as technical selling and oversupply fears intensified. A wave of selling by algorithmic traders, known as CTAs, further weighed on the market after both WTI and Brent crude met resistance at their short-term moving averages.
The OPEC alliance announced a modest output increase in April, which will slow down the pace of cuts over 18 months. This move was aimed at offsetting a seasonal demand lull early next year, said Saudi Arabian Energy Minister Prince Abdulaziz bin Salman. However, many banks still expect a surplus in 2025 due to cooling Chinese demand growth and increased production from the Americas.
The market remains volatile, with range-bound prices since mid-October. Geopolitical developments in the Middle East and Ukraine have provided some bullishness, but expectations of a glut in 2025 continue to cast a shadow over prices. The potential for Trump administration tariffs and possible sanctions on Iran also add uncertainty to the market.
Despite this, oil prices found a temporary floor near $67, which is a technical support level that WTI has rarely breached in recent weeks.
Source: https://finance.yahoo.com/news/oil-steady-opec-once-again-000947354.html