The West Texas Intermediate for January delivery slumped 3.33 US dollars to settle at 53.43 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery plunged 4.26 dollars to close at 62.53 dollars a barrel on the London ICE Futures Exchange.
Brent crude has run into resistance at the 38.2% Fibonacci Retracement level (rise from 2016 low to 2018 high), which keeps the bearish momentum intact.
At 0802 GMT, January WTI crude oil futures are trading $57.45, up $0.77 or +1.36% and January Brent crude oil is at $67.37, up $0.61 or +0.91%. The global benchmark fell as much as 7.6 percent to $61.71, the lowest level since December 2017.
Brent crude in London fell by $0.46 and the price of WTI in NY fell $0,29. WTI prices are about 30 percent lower from near four-year peaks hit in early October, weighed down by surging supply and the selloff in risk assets worldwide.
"For the time being it's more about risk", said Jim Ritterbusch, president of Ritterbusch and Associates.
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"Rising global growth fears smashed oil markets and saw European and US shares slide", futures brokerage CMC Markets said in a daily note.
"I never really understood the premium behind some kind of friction between USA and Saudi Arabia from a policy standpoint".
Amid the uncertainty, financial traders have become wary of oil markets, seeing further price downside risks from the growth in US shale production as well as the deteriorating economic outlook.
Wednesday's rebound came after a report by the American Petroleum Institute late on Tuesday that United States commercial crude inventories last week fell unexpectedly by 1.5 million barrels, to 439.2 million, in the week to November 16.
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Today's rebound came after a report by the American Petroleum Institute last night that U.S. commercial crude inventories last week fell unexpectedly by 1.5 million barrels, to 439.2 million, in the week to November 16.
"While the news that OPEC+ said it would cut 1.4 million barrels of oil per day from production, it's looking likely that the cuts will have to be deeper in order to stabilise the price".
The Organization of the Petroleum Exporting Countries, led by Saudi Arabia, is pushing for the group and its partners to reduce output by 1 million to 1.4 million barrels per day to prevent a build-up of unused fuel. With OPEC and its allies scheduled to meet in Vienna early December to discuss output plans, the International Energy Agency warned this week that cutting supplies may have some negative implications.
"The global economy is still going through a very hard time and is very fragile", IEA chief Fatih Birol said on Tuesday.
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