December WTI Crude Oil futures fell for the third straight session, with the 200-day moving average acting as strong resistance. The average has started to tilt slightly downward, suggesting a potential long-term downtrend. Markets are anticipating a modest crude oil draw in the upcoming EIA inventory report, with similar small declines forecast for gasoline and distillates, continuing a trend of reduced domestic stockpiles. Crude oil traders will be monitoring the EIA data for any divergence from these estimates. The market is caught in a tug of war between geopolitical factors: easing Middle East tensions and a possible Chinese demand spike. The de-escalation of tensions and increased supply from OPEC and OPEC+ are seen as largely responsible for the view of a globally oversupplied crude oil market, depressing prices. However, a demand surge could be expected if positive news emerges from the high-level South Korea summit regarding U.S. and China trade.
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