Oil looks to stabilize, OPEC cut hopes underpins

Oil prices on both sides of the Atlantic stalled its bearish consolidative phase and broke to the upside, now looking to stabilize amid broad based US dollar weakness and renewed OPEC output cut deal hopes.

Attention turns to US data

Currently, both crude benchmarks trade modestly higher, with Brent near $ 46.80 while WTI trades around 45.80 levels. Oil prices are seen reversing a part of yesterday’s decline and now attempt gains as oversupply worries take a backseat in wake of renewed hopes that the OPEC will reach an oil output cut agreement later this month.

On Wednesday, the black gold snapped the previous rebound and fell sharply after the EIA weekly crude inventories report showed a bigger-than expected increase in the crude reserves. The US crude inventories rose by 5.3 million barrels in the week to Nov. 11, well above forecasts of an increase of 1.5 million barrels.

All eyes now remain on the key US CPI data and Fed Yellen’s testimony, which is expected to have a significant impact on the USD price-action, eventually impacting the USD-denominated oil.

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