Bucking traditional seasonality, WTI crude oil futures are on the rally as winter approaches. For the session, December WTI futures are up more than $0.50 per barrel and above $42.00. However, the new front-month contract is January 2021 WTI. As of this writing, January WTI is trading with a 4/1 volume advantage and in the neighborhood of $42.20.

The EIA, API Inventories Reports Are In…

It’s Wednesday ― that means that the weekly crude oil inventory cycle is complete. Here’s a quick look at the highlights:

Event                                                        Actual                  Projected            Previous

API Crude Oil Stocks                              4.174M                        NA                 -5.147M

EIA Crude Oil Stocks                              0.768M                    1.650M              4.278M

No doubt about it, conventional oil market drivers are having little impact on pricing. Today has brought supply builds in both the API and EIA figures. So, shouldn’t prices drop? Nope. Right now, OPEC+ production cuts and the potential Biden crackdown on fracking are driving WTI crude oil futures north.

A Last Look At December WTI Crude Oil Futures 

It’s been a big month for December WTI futures. Prices rallied nearly $10 per barrel from early-November lows. Right now, supply questions and COVID-19 vaccine optimism are driving the bullish sentiment.

Overview: Despite the potential for more COVID-19 lockdowns, a long-side bias is warranted toward WTI crude oil. Right now, it looks like a slumping USD, OPEC output cuts, U.S. fracking cuts, and vaccine hopes are driving significant positive sentiment. Moving forward, each of these factors points toward a major 2021 rebound for global oil.