U.S. light crude for January delivery fell $2.64 to $33.58 a barrel by 6:50 a.m. EST. The new four year low was made on the heels of a record production cut by the OPEC on Wednesday, but even that was not enough to alleviate fears that the weakening global economy will keep crude and crude-related products under pressure for months to come.
Technical traders who use long-term price movements to forecast where crude futures will settle believe the next support for oil is around $35 a barrel. Dean Hazelcorn, a trader with Coquest Inc. in Dallas, said refiners’ profit margins are starting to improve, which could also encourage buying of oil for near-term delivery, boosting the front-month futures price.
When OPEC President Chakib Khelil was asked today if he believed oil prices had found a floor around current levels, he replied, “I don’t believe there is any reason for it to fall any further. I don’t see it going lower.”
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