The North American oil benchmark, WTI continues to struggle to gain grounds as supply still remains quite elevated. The global supply is down just 300,000 barrels per day from a year ago. The bigger drop in supply outside OPEC, mainly North America is being compensated by increased supply from OPEC and Russia.

Key factors at play in Crude market 

• Latest reports from the OPEC and the IEA warns on the increased supply with is likely to outstrip demand at least until mid of next year.
• Russia and Saudi Arabia has formed a joint working group to find ways to reduce oil market volatility.
• Global oil inventory now stands at 3.1 billion barrels.
• Saudi Arabia and Russia have formed a joint working group to study ways to reduce oil market volatility.
• Iran is said to be ready to support any initiative that brings up the oil price between $50-60 per barrel.
• Recent research by Rystand Energy has revised US crude reserve upwards to 264 billion barrels, more than Saudi Arabia and Russia.
• U.S. oil production has dropped to 8.49 million barrels/day and likely to drop further. It has declined more than a million barrel from the peak but up from its low of 8.43 million barrels per day.
• Active oil rigs in the US have been climbing and up more than 25 percent from its bottom.
• API report showed 7.5 million barrel draw in weekly crude oil stock.

Today’s inventory report from US Energy Information Administration (EIA) will be released at 14:30 GMT.

Trade idea 

• WTI is currently trading at $44.8 per barrel, might try to gain grounds from here to test the $50 area but a break below $43 per barrel support area would open up the sub 40s for the oil.