Crude oil prices dipped lower on Wednesday after the Energy Information Agency (EIA) inventory report data revealing crude stockpiles dropped for the third straight week, whereas inventories of both gasoline and distillates rose more than expected. Crude Inventories of U.S. crude fell by roughly 5.6 million barrels for the week ended Dec. 2, beating expectations of a draw of 3.4 million barrels.
Gasoline inventories rose by 6.8 million barrels, well above expectations for rise of 1.7 million barrels, while supplies of distillate rose by about 1.7 million barrels, above expectations for a draw of 967,000 barrels.
The daily chart of Crude Oil market has broken the “Rising wedge” pattern on bearish momentum which indicates that sellers have taken control over the market. Further fall on the same trend is expected towards $55.50-54.75(3580-3532) levels in the upcoming sessions. A Neckline support holds at $54.75(3532) where we can expect a small correction with bullish trend. Once the support is broken, then the rally is likely to continue in bearish trend. Resistance holds at $57(3677).
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