WTI rises above $57 in post-settlement trade amid large draw in US crude stocks
- API's report shows a bigger-than-expected drawdown in crude oil inventory
- WTI adds 20 cents on data and rises above $57.
- Brent pushes higher towards the $63 handle.
Crude oil prices gained traction in the post-settlement trade on Tuesday, with the barrel of West Texas Intermediate advancing to its best level since November 10 at $57.20. As of writing, the barrel of WTI Was trading at $57.15, gaining 1.3% on the day.
"Crude inventories fell by 6.4 million barrels in the week to Nov. 17, compared with analysts' expectations for a decrease of 1.5 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1.8 million barrels, refinery crude runs rose by 642,000 barrels per day," according to Reuters' summary of the weekly report released by the American Petroleum Institute.
Ahead of next week's critical OPEC meeting, where a possible extension to the OPEC/non-OPEC output cut deal is going to be discussed, the barrel of WTI could have a difficult time rising above the 2-year peak that it set earlier this month near the $58 handle.
Technical levels to watch
The initial hurdle for the barrel of WTI aligns at $57.35 (Nov. 10 high) ahead of $58 (psychological level/Nov. 8 high) and $59 (Jul. 1 2015 high). On the flip side, technical supports could be seen at $56.30 (daily low), $55.60 (Nov. 20 low) and $55 (psychological level/Nov. 15/16 low).