Oil prices fell to a three-week low, closing around $67 per barrel, as investor concerns over oversupply led to increased technical selling. OPEC and its allies' decision to restore production at a slower pace than initially planned helped limit the market's decline. However, the prospect of oversupply continues to weigh on the market.
Both WTI and Brent crude faced resistance at short-term moving averages, prompting algorithmic traders, such as commodity trading advisors, to sell. A commodity strategist from TD Securities noted that the deteriorating trend signals are causing more selling in Brent, which could further pressure oil prices.
WTI crude for January delivery fell 1.6% to settle at $67.20 per barrel, while February Brent crude dropped 1.4% to $71.12 per barrel.
