WTI drops below $50 on OPEC headlines

Crude oil prices came under a renewed selling pressure during the NA session as the latest headlines from the OPEC meeting hurt the sentiment, pushing the barrel of West Texas Intermediate dropping to its lowest level since last Friday at $49.44. At the moment, the barrel of WTI was trading at $49.60, losing a little more than 3% on the day.

• Iran Oil Minister confirms OPEC, non-OPEC rollover of nine months

Although several statements from different officials during the day confirmed that OPEC, non-OPEC agreed to extend the production cut deal for nine more months, the market reaction stayed limited as this was widely expected. However, the latest news from the meeting suggested that the cut in oil supplies of 1.8 million barrels per day (bpd) will remain unchanged, disappointing the investors who were expecting a deeper cut. Furthermore, another delegate said that there won't be any new countries joining the supply deal.

• 172nd OPEC meeting press conference – Live
• OPEC, non-OPEC oil output cuts remains about 1.8 million barrels per day - REU
• Ecuador Oil Minister: No OPEC quotas changed, no extra compliance measures

Technical outlook

The barrel of WTI could face the initial support at $49 (psychological level) ahead of  $47.35 (May 11 low) and $47 (psychological level). To the upside, resistances align at $50 (psychological level), $50.55 (May 19 high) and $51.50 (May 23 closing level).