WTI dips below $44 on rising US inventories

Oil dropped as US inventory report showed weakening of demnd.
OPEC failed to agree over an extension of output cuts on Monday.

Omkar Godbole FXStreet Contributor

Oil prices fell below $44 on Wednesday, extending the weekly drop, on the evidence of weakening demand conditions in the US.

West Texas Intermediate (WTI) crude, a North American oil benchmark, printed a low of $43.92 after Tuesday's 1.74% decline from $45.08 to $44.55.

The US oil inventories rose 4.146 million barrels in the week ended Nov. 27, the American Petroleum Institute (API) data showed on Tuesday. Analysts had projected an inventory draw of 2.358 million barrels for the week. The API reported a bigger-than-expected oil inventory of 3.8 million barrels in the preceding week.

The data shows a decline in US oil demand amid the resurgence of coronavirus.

The bearish inventory data, coupled with the OPEC's decision to end a meeting on Monday without a decision on its production plans for 2021 and delay a meeting set for Tuesday until later in the week, weighed over oil prices.

The dollar index, which tracks the value of the greenback against majors, fell to 91.24, the lowest level since April 2018, on renewed expectations for additional US fiscal stimulus. That, however, failed to put a bid under oil prices.

Technical levels

WTI

Overview
Today last price	44.12
Today Daily Change	-0.52
Today Daily Change %	-1.16
Today daily open	44.64

Trends
Daily SMA20	42.23
Daily SMA50	40.63
Daily SMA100	40.94
Daily SMA200	36.73

Levels
Previous Daily High	45.77
Previous Daily Low	44.22
Previous Weekly High	46.31
Previous Weekly Low	42.34
Previous Monthly High	46.31
Previous Monthly Low	33.85
Daily Fibonacci 38.2%	44.81
Daily Fibonacci 61.8%	45.17
Daily Pivot Point S1	43.98
Daily Pivot Point S2	43.33
Daily Pivot Point S3	42.43
Daily Pivot Point R1	45.53
Daily Pivot Point R2	46.43
Daily Pivot Point R3	47.08

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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