WTI challenges $53.00 ahead of API report

• Prices of the WTI erase initial gains and recede to the $53.00 area.
• API’s weekly report on US crude inventories next on tap.
• Traders’ focus remains on the OPEC+ meeting on December 6-7.

Prices of the barrel of the American reference for the sweet light crude oil are now struggling for direction after briefly testing the boundaries of $54.50.

WTI looks to API, OPEC+

The barrel of WTI gave away earlier gains to the mid-$54.00s and has now retreated to the $53.00 neighbourhood, despite the offered bias around the greenback and speculations of output cuts at the OPEC+ meeting.

In fact, traders remain focused on the imminent OPEC meeting on December 6-7 in Vienna, where the cartel’s members could agree to curb the crude oil production by around 1.3M barrels. The agreement, however, remains elusive for the time being as Russia has to yet make a decision on the matter.

Later in the NA session, the American Petroleum Institute will publish its weekly report on US crude oil supplies ahead of tomorrow’s report by the DoE.

WTI significant levels

At the moment the barrel of WTI is up 0.77% at $53.41 facing the next hurdle at $54.45 (high Dec.4) seconded by $55.22 (21-day SMA) and finally $57.94 (high Nov.16). On the flip side, a break below $52.16 (10-day SMA) would aim for $49.34 (2018 low Nov.28) and then $48.92 (monthly low Oct.6 2017).