Oil prices are failing to capitalize on a weaker US dollar. Price action is trading weaker on Tuesday.
Following a brief rise toward the 42.94 handle, oil prices are drifting lower.
The support area near the 42.00 level will be the likely target once again to the downside. We expect this support to hold up ahead of the OPEC+ meetings due to start tomorrow.
If oil prices lose the 42.00 handle, then we might get to see price action drifting somewhat lower. This would mean that the commodity will once again trade within the range of 42.00 and 41.00 in the near term.