WTI erases daily gains post-EIA report, edges lower toward $57

• US  crude oil inventories decreased by 5.1 mln barrels last week.
• US oil output up 0.8% to 9.780 mbpd.
• OPEC expects oil demand to rise in 2018.

Crude oil prices struggled to extend gains in the NA session even after the EIA reports a larger-than-expected drawdown in crude oil inventories in the United States. As of writing, the barrel of West Texas Intermediate was trading at $57.15, virtually unchanged on the day.

Earlier today, the monthly oil market report released by OPEC showed that the global demand in 2018 is expected to grow by 1.51 million barrels per day and provided some fuel for oil to recover yesterday's losses. The barrel of WTI rose all the way up to $57.85 before losing its momentum.

In its weekly report, the Energy Information Administration announced that commercial crude oil inventories decreased by 5.1 million barrels for the week ending December 8. However, further details of the report also showed that the oil production in the U.S. increased by 0.8% on a weekly basis, bringing the total output to 9.789 million barrels per day.

With this week's stock reports out of the way, markets will be closely watching Friday's Baker Hughes report, which shows the total number of active oil rigs in the U.S.

Technical levels to consider

The initial resistance for the barrel of WTI could be seen at $57.85 (daily high) ahead of $59 (Nov. 24 high) and $60 (psychological level). On the downside, supports could be seen at $55.80 (Dec. 7 low), $55 (psychological level) and $53.90 (Nov. 1 low).