The recent upturn of the oil prices has turned to be short-lived, with the new selloffs to follow. The quotes just reached the 72 handle, but then Brent prices resumed collapsing even at a higher pace. Specifically, the 69 handle was broken for the first time since April as the market expert noted. On a Tuesday trading oil shows attempts to recover, though they are not firm enough to be signs of the upward impulse shaping.
It was reported that the monitoring committee of OPEC+ during the meeting had cited a need to reduce oil production. Meanwhile, Saudi Arabia representative noted that Saudi oil companies might start cutting output in December. However, such news failed to stir players up, and the market keeps getting increasingly vulnerable to fears of oversupply and demand slackening. Additional pressure can come from a general mood of investors, the worsening of which restrains the price rise.
The Brent prices partly failed to rebound due to another aggressive message of Donald Trump saying that the current prices are too high. Moreover, he hopes that Saudi Arabia and OPEC will not reduce production. As a result, the market showed that it is sensitive to such messages and slapped faster posting new bottoms.
In the near term, the market will keep "processing" Trump's hint as well as assess how Saudi Arabia can react on the US pressure. It is also important to monitor the development of the US dollar, especially given heavy pressure on oil from the recent hikes.