Dead Cat Bounce For Oil In Europe

Dec 07 09:12 2017 Print This Article

Oil prices have recovered slightly in Europe but are far below the massive selloff levels from overnight, and the pain may not be over yet.

Oil prices tanked overnight with Brent falling 2.20% and WTI 2.60%; their biggest one day falls in over a month. Both contracts were wobbling yesterday as a lack of new drivers post the OPEC meeting saw the extended long positioning in the market get increasingly nervous.

The official U.S. Crude Inventory data delivered the coup de grace with the street ignoring the Keystone Pipeline shutdown-induced fall in crude stocks by 5.60 million barrels. Instead, traders concentrated on the gasoline inventories number which rose by a mammoth 6.80 million barrels against an expected rise of 2.55 million barrels. The knife was twisted as it was announced that U.S. crude production had risen to 9.70 million barrels a day.

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