Crude oil prices are down by over 1.5% on Wednesday. The declines come right after prices soared to intraday highs of 37.25 a barrel.
Price action is pulling back currently amid Saudi Arabia and Russia warning OPEC members not to cheat on production quotas.
The fact that the OPEC meeting is also postponed adds to this negative sentiment.
For now, the pullback is in line with a moderate correction.
The price level of 33.66 remains a key level amid this correction.
But given oil’s strong momentum to the upside, a minor reversal could also occur.
However, oil prices need to break past 37.25 to ascertain further gains.