WTI erases EIA-inspired losses, trades above $59
|- EIA reported larger-than-expected increase in US crude stocks.
- IEA noted global oil demand rose 900,000 barrels per day in Q3.
- Focus remains on US-China trade talks ahead of tariff hike.
Crude oil prices registered losses on Wednesday pressured by the weekly data published by the US Energy Information Administration (EIA). However, the International Energy Agency (IEA) monthly report helped ease concerns over the global energy demand outlook and allowed oil prices to recover.
The barrel of West Texas Intermediate, which came within a touching distance of $58 on Wednesday, was last seen trading at $59.10, adding 0.5% on a daily basis.
Attention shifts to trade war headlines
The EIA reported that commercial crude oil inventories in the US increased by 0.8 million barrels in the week ending December 6th to surpass the market expectation for a decrease of 2.75 million barrels and weighed on crude oil prices. On the other hand, the IEA noted that the global oil demand rose by 900,000 barrels per day on a yearly basis in the third quarter of 2019 to register the highest annual growth in a year.
With the weekly data out of the way, investors will stay focused on the developments surrounding the US-China trade conflict as time runs out ahead of the December-15 tariff hike. In case sides conclude phase one of the trade deal and avoid the tariff hike, crude oil prices could gain traction on the back of heightened hopes of the global economy gaining recovery momentum.
Technical levels to watch for
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