Market participants were not inspired by OPEC decision to extend the deal by nine months, in part due to the fact that prolongation was mainly prices in already. Meanwhile, further signs of slowing global growth are fueling fears of weakening global demand for oil . The additional pressure comes from the US, where shale oil producers continue to expand their activity.
Technically, Brent needs to hold above $65 in order to avoid another retreat to $64.60 and then $64.20 on the way to $64. On the upside, the immediate resistance comes around $66. Once above this barrier, the short-term downside risks will partially abate.