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API crude oil inventories unexpectedly rose, and U.S. oil losses expanded

After a volatile day, WTI crude oil hovered below $74 before the release of API data, but then extended its losses as data showed an unexpected increase in crude oil inventories. Dennis Kissler, senior vice president of trading at BOK Financial Securities, said in a note to clients that as the end of the year approaches, barring further escalations in the Red Sea region, more trading will focus on rebalancing positions when trading volume is scarce. It can be noted that WTI crude oil encountered a “death cross” today (the 50-day moving average fell below the 200-day moving average) for the first time since September 2022. In addition, the time spread, which is a key barometer of supply and demand, has eased, with the spread between the two closest contracts for WTI crude oil at 24 cents/b compared to 14 cents/b yesterday.

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