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  • Oil dropped as US inventory report showed weakening of demnd. 
  • OPEC failed to agree over an extension of output cuts on Monday.

Oil prices fell below $44 on Wednesday, extending the weekly drop, on the evidence of weakening demand conditions in the US. 

West Texas Intermediate (WTI) crude, a North American oil benchmark, printed a low of $43.92 after Tuesday’s 1.74% decline from $45.08 to $44.55. 

The US oil inventories rose 4.146 million barrels in the week ended Nov. 27, the American Petroleum Institute (API) data showed on Tuesday. Analysts had projected an inventory draw of 2.358 million barrels for the week. The API reported a bigger-than-expected oil inventory of 3.8 million barrels in the preceding week. 

The data shows a decline in US oil demand amid the resurgence of coronavirus. 

The bearish inventory data, coupled with the OPEC’s decision to end a meeting on Monday without a decision on its production plans for 2021 and delay a meeting set for Tuesday until later in the week, weighed over oil prices. 

The dollar index, which tracks the value of the greenback against majors, fell to 91.24, the lowest level since April 2018, on renewed expectations for additional US fiscal stimulus. That, however, failed to put a bid under oil prices. 

Technical levels