WTI Crude Oil Steadies After Two Days of Decline, Weak Demand Weighs

Early on Wednesday, WTI crude oil prices are trading steady after two consecutive days of weakness as traders await market moving updates from the EIA and news on the trade deal. At the time of writing, WTI crude oil is trading at around $55.36 per barrel.

According to the API report released on Tuesday, US crude inventories soared by 6 million barrels during the previous week to touch 445.9 million barrels. Analysts were expecting a more moderate rise by 1.5 million barrels for this period.

The rise in crude inventories brought back worries of oversupply amid weakening demand, weighing on oil markets and keeping crude oil prices under pressure. Markets are now expecting OPEC and its allies to explore the possibility of further curbs in crude production when they meet on December 5-6 in Vienna.

However, Russia has already hinted that it is not too keen on deeper curbs, which are likely to drive further weakness in oil prices. Meanwhile, hopes for the interim trade agreement between the US and China are fading as both sides continue to disagree on the issue of tariff rollbacks.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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