Oil prices, on Thursday, December 8, maintained its descent for the third consecutive day despite a larger-than-expected drawdown reported by the official EIA set of weekly inventory figures.
Stockpiles dropped by 2.4 million barrels, a larger decline than the 1.4 million drop projected by economists and the 2.2 million decline foreshadowed by a private-sector estimate from API.
The move may reflect profit-taking on recent gains as elation following a last-minute OPEC supply cut deal dissipates. Meanwhile, an expected pickup in US output threatens to offset output restriction elsewhere.
The breadth of non-OPEC participation remains unknown before a meeting of cartel members and other key producers this weekend.
Crude oil prices turned lower as expected after putting in a bearish Dark Cloud Cover candlestick pattern. From here, a daily close below the 38.2% Fibonacci retracement at 48.49 targets the 50% level at 47.28. Alternatively, a reversal above the 23.6% Fib at 49.98 exposes the 14.6% retracement at 50.90.
