OPEC bickering triggers negative oil chart formation, selling could intensify

Bijan Namdar Zanganeh, Iran's petroleum minister, center, speaks to journalists ahead of the 171st Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna, Austria, on Wednesday, Nov. 30, 2016.
Akos Stiller | Bloomberg | Getty Images
Bijan Namdar Zanganeh, Iran's petroleum minister, center, speaks to journalists ahead of the 171st Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna, Austria, on Wednesday, Nov. 30, 2016.

OPEC's wrangling is crushing oil prices, and an immediate drop to $42 per barrel could be in the cards if the cartel doesn't step up with a deal.

Analysts say $42 is just the starting point for a steep decline if OPEC walks away from the table before cutting production at its meeting Wednesday in Vienna.

West Texas Intermediate futures for January settled down nearly 4 percent Tuesday at $45.23 per barrel. But technicians say that was just the top of a new level that has shown up on a fairly scary WTI chart.

WTI crude, 6 months

Source: Factset