Oil turns lower after short-lived spike

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Crude oil prices spiked higher following a report that showed US crude inventories dropped for first time in 11 weeks, but the commodity failed to hold onto gains for long, and pulled back to negative ground for the day.

    US Energy Information Administration (EIA) reported that crude supplies dropped by 3.6 million barrels for the week ended Dec. 4, well below the 1.3 million barrels increase expected.

    WTI rose to near $39.00 a barrel following the news but turned lower afterward and dropped back to near $37.00 over the last hours. It was last trading at $37.25 a barrel, down 0.69% on the day.

    Still oil prices remain at 6-year lows after last Friday the Organization of the Petroleum Exporting Countries (OPEC) failed to agree a reduction on output to stabilize prices, which have fallen more than 60% since mid-2014.
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