Oil falls through $60 as jitters hit in the countdown to OPEC begins

The OPEC+ decision is tomorrow

oil chart

There’s a strong consensus that OPEC+ will extend production curbs for at least another month at tomorrow’s meeting but there are some jitters after today’s JMMC meeting ended with no policy recommendation.

WTI has fallen back to a session low of $59.60 from a high of $61.17 just a few hours ago. It’s testing the session low of $59.96.

Looking at the big picture, oil is consolidating after the one-way run higher since October. It will take a close outside the $57.26-$62 range to kick up any emotion in the market.

I’m an oil bull but I fear the downside. There’s hardly any scope for OPEC to surprise with something positive for oil while any talk of pulling back the throttle could easily send oil through $57. If that were to happen, I would be a buyer in the low $50s.

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