- Oil defends bids in Asia, but remains just below the 59 handle.
- OPEC forecast limit the negative impact of US crude stocks build.
- Markets eagerly await the US decision on the Dec. 15 tariffs.
WTI (oil futures on NYMEX) extends its overnight consolidation phase just below the 59 handle in Asia this Thursday, as the dust settles following a volatile Wednesday’s trading session. The black gold enjoyed a wild ride a day before, initially rising above the 59 handle after the OPEC, in its monthly report, forecasts a supply deficit next year. However, the upside was quickly reversed, as the prices witnessed a sharp drop to three-day lows of 58.12 on a surprise build in the US Crude Stocks data, as published by the Energy Information Administration (EIA).
The EIA showed that the US crude stockpiles last week rose unexpectedly, gaining more than 800,000 barrels against a forecast for a 2.8 million barrels decline. The barrel of WTI staged a solid comeback in the US last session after the dovish FOMC event triggered an extensive broad US dollar sell-off. A weaker US dollar makes the USD-denominated oil attractive for holders in foreign currencies.
Looking ahead, the prices will take fresh cues from any developments on the US-China trade front, with the key US decision on the Dec.15 tariffs eagerly awaited for fresh near-term direction in the prices.
WTI Technical levels to consider
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