WTI trims losses, re-takes $ 53 as focus shifts to OPEC+ meeting

WTI (oil futures on NYMEX) stalled its overnight declines and reverted to test the 53 handle amid increased expectations of the OPEC output cuts following the reports that Saudi Arabian and Russian Energy Chiefs will meet prior to the OPEC meeting.

More so, broad-based US dollar retreat combined with fresh supply disruption concerns amid a shutdown of the Libyan ports collaborated to the latest leg up in the black gold. According to the Libyan National Oil Company (NOC), “bad weather has shut all Libya ports, storage capacity at Zawiya refinery is critical; production could be cut on Thursday.”

The barrel of WTI fell earlier today, as the bulls were pressured by the negative API fuel stocks report and global economic slowdown concerns. The latest API data showed that the US crude inventories rose by 5.4 million barrels in the week to Nov. 30, to 448 million barrels, in a sign that US oil markets are in a growing glut, Reuters reports.

Markets now look forward to the official US government oil production and inventory data that is slated for release tomorrow and the much-awaited outcome of the OPEC+ meeting for the next direction on the prices.