WTI Crude Oil Daily Analysis – December 7, 2017

Crude oil prices dropped sharply on Wednesday and trade higher on Thursday morning as investors respond to the Energy Information Agency (EIA) inventory report data. The report revealed that crude stockpiles dropped for the third straight week, whereas inventories of both gasoline and distillates rose more than expected.

Crude Inventories of U.S. crude fell by roughly 5.6 million barrels for the week ended Dec. 2, beating expectations of a draw of 3.4 million barrels.

Gasoline inventories rose by 6.8 million barrels, well above expectations for rising of 1.7 million barrels, while supplies of distillate rose by about 1.7 million barrels, above expectations for a draw of 967,000 barrels.

Technical view

Crude oil daily chart has broken the “Rising wedge” pattern which indicates a bearish momentum. Crude oil prices are expected to continue its fall towards $54.75-$55.50 levels in the upcoming sessions.

The neckline support holds at $54.75 where we can expect a small correction. Once the support is broken, then the fall is likely to continue, resistance still holds at $57.