There's a lot of red being seen in the commodity sphere today
Oil is front and centre in a weakening commodity price picture today. Prices dropped nearly $3 yesterday following the DOE data and the pain is continuing today as Brent drops another $2.70 odd to 52.00.
Brent crude H4 chart
The general feeling in the market today is that the OPEC cut isn't eating into supplies like it should be, and that US production and inventories keep gaining, which is a signal that demand isn't there either. There's at least one person here at ForexLive who's not surprised in the slightest ;-)
Yesterday's comments from the UAE oil minister that the deal will probably be extended is being taken as a further sign that this deal isn't going entirely to plan.
The area around 51.00/20 is the next big support point for oil here.
Of course, that's another reason why were seeing weakness in the commodity currencies also.
