WTI Crude Oil Daily Analysis – December 13, 2017

WTI crude oil prices dipped lower on Tuesday and trade higher on Wednesday morning as investors respond to the Forties pipeline shutdown and bets for a big drop in US crude supplies.

Andrew Gardner, chief executive of the Ineos Forties Pipeline System said: “We’re estimating just now between two and three weeks.”

Investors continued to fear that the widening Brent-WTI spread would increase demand for US exports, support producers to rise up output.

The American Petroleum Institute (API) reported on Tuesday that crude oil supplies fell by 7.382 million barrels last week, while gasoline inventories gained by 2.3 million barrels and distillate stocks increased 1.5 million barrels.

Analysts forecast crude inventories fell by 3.8m barrels for the week ended Dec. 9. The EIA data is due to be released later on today.

Technical view

Crude Oil Daily chart continues in “Rising wedge” pattern. The trend remains bullish as prices retested the interim support line and bounced back up.

As per the technical aspects of the pattern, the retest is expected to push the market furthermore and could test $58.50-$59 levels in the upcoming sessions. Resistance holds at $59 and Support holds at $56-57.40.