WTI struggles on surprise crude build
|- WTI is under pressure, likely due to surprise US inventory buildup.
- A close below Tuesday's low would confirm a short-term bearish reversal.
WTI oil prices are flashing red in the Asian session with buyers sitting on the fence, possibly due to the surprise inventory buildup in the US.
At press time, a barrel of WTI is changing hands at $58.90, representing a 0.50% drop on the day.
The American Petroleum Institute (API) on Tuesday estimated an inventory build-up of 1.41 million barrels for the week ended Dec.4 compared to expectations of a 2.763-million-barrel drop in inventory.
The inventory report, which applied brakes to the oil rally near $59.50 in the overnight trade, is likely keeping the black gold on the defensive at press time.
While the benchmark is currently reporting losses on the day, it is still up more than 6.5% on a month-to-date basis.
Oil prices are expected to remain bid in 2020, courtesy of the recent decision by the OPEC and Russia to deepen production cuts. Goldman Sachs has increased the WTI spot price outlook to $58.5 per barrel for 2020 from $55.5. The bank has also revised its Brent spot price forecast to $63 per barrel for 2020, up from a previous estimate of $60.
Technical levels
The short-term trend would turn bearish if prices close below $58.54 on Wednesday, validating Tuesday's spinning top candle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.