Oil trades near three-month peaks on Thursday, extending a robust streak that started a week in the past, after data confirmed U.S. crude inventories had dropped while production cuts by major producers kept supply snug.
Brent crude futures fell 1 cent to $66.16 per barrel, while U.S. West Texas Intermediate (WTI) crude tanked 3 cents to $60.90. Trading volume was thin, with no news of President Donald Trump’s impeachment by the U.S. House of Representatives moving the oil market.
Based on weekly data launched by the Energy Information Administration (EIA) Wednesday, U.S. crude stockpile dropped 1.1 million barrels on December 6, while gasoline and distillate stockpiles rose.
While there’s a clear uptrend in place on the daily technical price chart for WTI to potentially proceed towards $61.50 a barrel, there are near-interval-risks- touching that price stage might encourage merchants to sell, McCarthy stated.
The trend leaves oil costs set to surge for a third straight week, surfing momentum from declarations this month about deeper output cuts by major producers in addition to the ‘Phase One’ agreement between the U.S. and China to resolve their long-running trade battle.
The settlement between the world’s two most prominent economies has improved the global economic scope, lifted the prospect for higher energy demand in 2020, and underpinned oil prices.
Just the week before, OPEC+ agreed to deepen production cuts by a further 500,000 barrels per day (bpd) from the first day of 2020 on top of previous reductions of 1.2 million bpd.