Oil remains weak on the bearish API report

• WTI oil hit 4-day low yesterday after the bearish API report.
• Doubts about OPEC output cut deal extension emerge.

WTI oil hit a 4-day low of $57.43 yesterday and remains on the back foot at $57.65 levels today, courtesy of the bearish American Petroleum Institute (API) report.

It reported a build of 1.821 million barrels of United States crude oil inventories for the week ending November 24 compared to analyst forecasts for an inventory drawdown of 3.15 million barrels.

Also, Goldman Sachs reported that the outcome of OPEC’s meeting with its partners in the oil production cut this Thursday is uncertain. It could have added to the bearish pressure around the oil prices.

Still, the downside has been capped around $57.50. Ahead in the day, US government's oil inventory report could influence oil prices. Traders also need to keep an eye on the OPEC/Russia sound bites.

WTI Oil Technical Levels

A break below $57.43 (10-day MA) would open up downside towards $56.41 (Nov. 8 low) and $56.00 (psychological level). On the higher side, breach of hurdle at $57.90 (Nov. 8 high) could yield a rally to $58.12 (1-hour 50-MA) and $58.63 (resistance on 1-hour).