Oil Prices Slip Below Key Levels Amid US Economic Concerns

Oil prices retreated as weak US economic data and technical resistance overshadowed progress by OPEC+ to sustain production cuts. At the time of writing, West Texas Intermediate (WTI) dropped 2% to below $US69 a barrel, reversing earlier gains. Similarly, Brent crude traded under $US73.

Rebecca Babin, senior energy trader at CIBC Private Wealth Group, highlighted that WTI’s inability to hold above its $US70 50-day moving average added technical pressure. Additionally, subdued trading volumes reflected a cautious market sentiment. US services activity in November grew at its slowest pace in three months, raising concerns about energy demand in the world’s largest oil consumer. This tempered optimism fueled by stricter US sanctions on Iran and anticipated OPEC+ agreements to extend production cuts into early 2025.

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