Alexander Novak, the Russian oil minister, has been speaking about the current OPEC and non-OPEC output deal. Novak stated that Russia is inclined toward extending the current production cut deal and that talks on this matter are in their final stages with OPEC members.
The comments saw an immediate pop off the lows in the Oil price but the market remains heavily under pressure with Brent down by more than a percent today and trading close to its 2017 lows.
49.70 could be seen as a swing low but a failure for this level to hold could see declines back to 47.60 – the level the market rallied from last year when the output cuts were being finalised.
Since peaking at 56.63 the market has been in a quite incredible downtrend with all but one of the daily candles providing a red close. This trend remains in tact and it appears it will take some strong jawboning, or maybe even decisive action from OPEC and non-OPEC members to support the price going forward.