WTI retraces daily gains post-API data, trades flat near mid-$57s
- US crude inventories fell by 5.5 million barrels.
- Refinery crude runs increased by 46,000 barrels per day.
- WTI loses 30 cents on API report.
Price of the barrel of West Texas Intermediate dropped in the post-settlement trade on Tuesday after the API released its weekly crude oil report. As of writing, the barrel of WTI was trading at $57.47, virtually unchanged on the day.
API data points to higher output
According to the American Petroleum Institute's weekly report, crude oil stocks in the United States decreased by 5.5 million barrels for the week ending December 1. Although a drawdown in the U.S. inventory usually boosts crude oil prices, the fact that refinery crude runs rose by 46,000 barrels on a daily basis revived the concerns over ramped up oil production in the United States. Moreover, gasoline stocks rose by 9.2 million barrels, beating the experts' expectation of a 1.7 million barrels.
On the other hand, in a recent report, Goldman Sachs analysts argued that amid faster-than-expected growth in global demand, oil prices are likely to continue to rise and would be able to preserve their strength at least through 2018.
Technical levels to consider
The barrel of WTI could face the initial hurdle at $59.05 (Nov. 24 high) ahead of $60 (psychological level) and $61.50 (Jun. 22 high). On the downside, supports align at $57.40 (daily low), $56.30 (Nov. 21 low) and $55 (psychological level).
- WTI bullish medium term (as long as $49.10 holds) – Commerzbank