Oil prices drop, OPEC stands its ground

Although the International Energy Agency (IEA) wrote that oil prices should further decline until March 2015 at least, there is growing uncertainty regarding their short-term evolution. Indeed technical analysis identified a bullish divergence yet such indicators have been repeatedly contradicted by mere rumors about the OPEC’s intents and whose meeting on Nov. 27 could greatly impact next year’s global economic environment. The overall trend remains bearish however, amplified by the large short positions of hedge funds and the record output of US production. The only hope for a turnaround would actually be geopolitical, at least temporarily.