Oil prices edged higher this morning (Thursday at Asia opening) after US crude inventories dropped 2.4 million barrels in the week that ended on Dec. 2 (compared with analyst expectations for a draw of 1 million barrels) but were quickly reversed to $53, by 9:30am (Nigerian time) after doubts over OPEC’s implementation of an output cut took a centre stage.

According to Jeffrey Halley, senior market analyst at OANDA brokerage in Singapore, “Momentum are currently dragged with mixed EIA crude inventories data and shale producers hedging via futures,”

Technically, Brent crude price has been consolidating around $53 key support region for two days as investors await the outcome of OPEC-Russia meeting this weekend in Austria’s capital to discuss the full details of last week agreement, which is aimed at restricting supply by 1.3 million barrel per day.

“Oil market might see a big rally next week to a new high, if both parties reach a definite agreement and concise plan otherwise, price may plunge to lower level, “, An analyst at OilAndNairaNews.com

Source: http://oilandnairanews.com/oil-price-headed-next-week/