After several failed attempts to settle above the $60 figure, Brent crude has accelerated its decline and made fresh 14-month lows marginally above $57 on Tuesday. The current environment in the markets confirms that not only oil remains attractive for selling on rallies, but traders tend to open short positions and don’t believe in the efficiency of a new OPEC+ deal.
Apart from that, the crude oil prices are getting more sensitive to global risks. Investors are getting more worried about the potential slowdown in the global growth, which fuels concerns over a weaker demand in 2019 amid the ongoing rise in the US shale oil production. By the way, as US Energy Information Agency reported on Monday, the oil production in the country is expected to rise to 8.166 million next year.
Should the market remains under pressure in the short term, the next downside target is expected at $55, where October 2017 lows lie. Brent needs to get back above the $61 barrier shift to a recovery mode, but there are no signs that the bullish drivers will come to the rescue, at least, so far. On the other hand, further sell-off could make major OPEC exporters come out with verbal interventions.