U.S. oil prices strike their highest levels since mid-2015 on the last trading day of the year as an unexpected fall in American production, as well as a fall in commercial crude inventories, strengthened buying.
According to data from the Energy Information Administration (EIA) released late on Thursday - The price rises were a result of drop in U.S. oil production, which last week dipped to 9.754 million barrels per day (bpd), down from 9.789 million bpd
EIA sources reveal - WTI prices were further boosted by a fall in U.S. commercial crude storage levels, which dropped by 4.6 million barrels in the week to Dec. 22 to 431.9 million barrels. Inventories are now down by almost 20 percent from their historic highs last March, and well below this time last year or in 2015.
Crude Oil 4Hr chart has formed “Rising wedge” upward breakout pattern. The last market session seems consolidated but is bullish in trend as the retest near an interim support level at $59.50(3808) was successful. As per the technical aspects of the pattern, the market is expected to continue on the same trend and the rally could test $60.50-61(3872-3904) levels in the upcoming sessions. Additional Support holds at $58.50(3744).
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