WTI Crude Daily Update for December 15, 2016

WTI crude oil prices dropped more than 3% on Wednesday, as OPEC continued to pump record rates of crude oil ahead of their self-imposed cap that is expected to begin in January.  The move comes despite a larger than expected draw in inventories reported by the EIA.  Crude prices dropped through support near the 10-day moving average and is poised to test target support near the December lows at 49.61.  Resistance is former support near the 10-day moving average at 51.45.

In the inventory front, the DOE reported that U.S. commercial crude oil inventories decreased by 2.6 million barrels from the previous week. Expectations were for a 1.5 million-barrel draw in crude oil inventories.  Despite the draw inventories remain near the top end of the average 5-year range for this time of year near 483.2 million barrels.

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