WTI goes into consolidation near $61 following five-day rally

• Crude oil stocks in US declined more than 1 million barrels.
• China announced tariff exemptions for US oil products.
• WTI is up more than 10% in December.

After posting gains for five straight days, crude oil seems to have gone into a consolidation phase. The barrel of West Texas Intermediate, which advanced to its highest level in three months at $61.17 on Wednesday, is now moving sideways in a tight range near $61. 

Supported by the OPEC's announcement of additional output cuts and the phase-one US-China trade deal, the WTI is adding more than 10% in December. 

Declining crude oil stocks in US allowed WTI to stretch higher

The weekly data published by the US Energy Information Administration on Wednesday showed that crude oil stocks in the US fell by 1.1 million barrels in the week ending December 13th to provide the latest boost to crude oil prices.

In the meantime, China announced a new batch of tariff waivers on US imports that include refined oil products such as white oil and food-grade petroleum wax. Although this development is unlikely to have a direct impact on the oil market dynamics in the near-term, it's seen as a sign toward further easing tensions between the US and China, which is likely to help the global energy demand remain healthy next year.

Technical levels to watch for