WTI weaker, but within range near $ 57.70 ahead of EIA report

• Weaker on bearish API report.
• Uncertainty over the OPEC output cuts extension weighs.
• EIA crude inventory report in focus.

WTI (oil futures on NYMEX) remains on the offers for the third day in a row, consolidating the retreat from two-year tops of $ 59.03.

WTI: Will it regain $ 58 mark?

The black gold is seen flirting with the daily lows of $ 57.62, having faded a spike to $ 57.80, as the sentiment remains dampened by rising doubts over whether the OPEC members and Russia will reach an agreement over a potential extension of output cuts beyond March 2018.

Adding to the negative tone around the commodity, Tuesday’s API report came out bearish, showing a 1.8 million barrels increase in the US crude inventories in the week ended Nov. 24 to 457.3 million barrels.

Moreover, Canada’s Keystone pipeline news also weighed down on oil prices. Keystone supplies crude oil to the US refineries. Meanwhile, traders also remain cautious, digesting the latest comments from the UAE Oil Minister, as attention now turns towards the official US government crude inventory report due to be published by the EIA.

At the time of writing, WTI drops -0.55% to $ 57.70, while Brent loses -0.41% and trades around $ 63 mark.

WTI Technical Levels

Higher-side levels: $ 59.03 (2-year highs), $ 60 (psychological levels), $ 61.82 (June-mid 2015 high)

Lower-side levels: $ 57.08 (20-DMA), $ 56.32 (Nov 21 low), $ 56.00 (zero figure)