WTI crude oil failed to sustain gain above 100 level and dropped sharply back below 99. Further loss is seen today after report showed unexpected rise in supplies. Inventories rose 3.9m barrels in the week ended December 23 as reported by the US Energy Department, comparing to consensus of -2.5b fall in stockpiles. Yesterday, API reported 9.5m barrels jump in inventories. Technically, the break of 99.37 minor support in TWI suggests short term topping. More importantly, the development indicates that recent consolidation from 103.37 is still in progress and is starting another falling leg. Thus, we’d probably see WTI crude oil pressured in near term back towards 95 and below.
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WTI Extends Decline after Inventory Report, Gold Down on Dollar Strength
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