WTI Crude Oil Prices Hover Close to Three-Month Highs Over Surprising Drawdown in US Crude Inventories

WTI crude oil continues to trade steady, near three-month highs, at the beginning of a fresh trading week, buoyed by a greater than expected drawdow in US crude inventories as well as optimism over US-China trade deal and OPEC supply cuts. At the time of writing, WTI crude oil is trading at around $61.75 per barrel.

According to the most recent EIA report which released on Friday, crude inventories in the US declined by 5.5 million barrels during the week ending December 20. This turned crude oil bullish as economists had previously forecast a drawdown of only 1.7 million barrels.

Oil markets are yet to react to news of US-led airstrikes on Iraq and Syria on Sunday. The US targeted several locations where Iran has allegedly stored weapons and munitions across Iraq and Syria.

Meanwhile, crude oil is trading bullish over the lack of volatility in markets during the holiday season. The optimism about the US and China signing the phase one trade deal shortly and OPEC extending deeper production curbs support oil prices continue to support oil prices.