Crude oil price falls on supply concerns
Crude oil prices declined in overnight trading. The price dropped even as traders continue to worry about supply and demand. In recent weeks, the IMF and major central banks have warned about economic growth in the global economy. Weak economic growth is often viewed as a negative for crude oil because it affects demand. As a result, OPEC is said to be considering further supply cuts in the upcoming December meeting. The organisation is also considering actions against uncompliant members like Nigeria. These countries have continued to pump excessive crude oil into the market. Yesterday, the UK announced a ban on hydraulic fracturing.
Crude oil technical analysis
The XBR/USD pair rose sharply yesterday to a high of 62.60. The pair then lost some of these gains during the Asian session. It is trading at 61.95, which is along the middle line of the Bollinger Bands. The RSI has declined from an overbought level of 81 to 57. The On Balance Volume has been relatively unchanged. The pair may continue to move up as traders focus on global trade and potential supply cuts by OPEC.