Oil is down by more than 1% on the day now
The ‘buy the rumour, sell the fact’ play is still very much in motion as oil is getting no reprieve at all from the fact that OPEC+ sealed a nine-month extension to the current output cuts deal, which was announced on Tuesday.
Oil fell hard on the day itself before a slight recovery amid risk-on sentiment overnight but the fall is resuming now with prices down by almost 1.3% currently.
The move higher in oil during June in anticipation of the OPEC+ decision failed to breach key resistance levels with the daily moving averages and the trendline resistance from April-May helping to limit gains and kept sellers in the game.
As such, we’re seeing sellers seize further control now and the fact that OPEC+ has done just a little above the bare minimum isn’t going to convince markets that the oversupply issue in 1H 2019 will go away in the 2H 2019.