The market for light crude oil futures continued to consolidate at and just above the all-important $50 level, as investors weighed global over-supply concerns against efforts from oil producers to potentially curb output.
Going into this week, we notice the market opening essentially in the middle of the current short-term consolidation phase, potentially signalling the continuation of the current sideways trading theme. The lack of major bullish activity off the $50 level possibly hints at more buildup towards the downside going into the end of the current calendar year, but a lot, of course, depends on the ability of the $50 level to provide (or not provide) support to the market.
