Crude Oil rally may stop that led WTI near to the level of $92 on 18th Nov. that was trading above $100 just before few weeks. This week the inventory is expected to fall at -0.2m from 2.6m. This will end the continuous increase in the inventory level of eight times in a row.
In short run the commodity may get support from this inventory fall but in long run we may see crude oil near to the old level of $92- $94. Increasing oil production at US is expected to make the country highest oil producer in nearby years. This may keep downside pressure on the oil prices.
At present level there are also some other factors that may support oil prices. China Manufacturing PMI is expected to remain at the previous level of 50.9. Sustained economic growth at world second largest oil consumer may support oil prices.US Manufacturing PMI is improving since 20th June and may continue the improvement this month as factory orders has gained to 1.7% for Oct. This month the US Manufacturing PMI may come near to the expectation of 19.8. This may further support oil prices.
Crude oil may get further gain as Fed is not expected to cut stimulus by this year end. Overall we may see slow upside trend in the oil prices.