The NYMEX Crude Oil Market Outlook is 74.83 US Dollars
On Wednesday (December 21), international oil prices were under pressure, affected by the very poor demand outlook, the NYMEX crude oil market outlook stood at $74.83. However, US crude inventories fell more than expected and OPEC+ is expected to keep supply tight, slowing the pace of oil price declines.
As of 3:45 PM Beijing time, NYMEX crude oil futures fell 0.31% to $75.99 a barrel, while ICE Brent crude oil futures fell 0.43% to $80.18 a barrel .
Data released overnight by the American Petroleum Institute (API) said U.S. crude oil inventories fell by 3.069 million barrels in the week to Dec. 16, while analysts had expected inventories to fall by only 167,000 barrels. Gasoline inventories and distillate inventories increased by 4.511 million barrels and 828,000 barrels, respectively.
“The larger-than-expected decline in oil inventories is positive, as the supply deficit could worsen again amid the United States replenishing its strategic oil reserves,” said Tina Teng, an analyst at CMC Markets.
Meanwhile, Saudi Energy Minister Prince Abdulaziz bin Salman said in an interview with the Saudi state news agency that OPEC+ members exclude politics from the decision-making process and from their assessments and decisions outside of forecasts.
The minister added that while OPEC+’s decision to cut oil production was heavily criticized, it proved to be the right decision to support market and industry stability. The comments suggest that OPEC+ will likely keep supply tight to support oil prices.
On the hourly chart, NYMEX Crude Oil prices are hovering around $75.97, which is the 23.6% Fibonacci retracement of the $70.10-$77.76 range. If the price is confirmed to be lost, then oil prices could drop to the 38.2% Fibonacci retracement level of the above-mentioned range at $74.83.
