• WTI stabilizes as dip-buying emerges following the latest EIA release.
• Weekly EIA data shows a 1.812 million-barrel decline in crude stocks, reversing last week’s build.
• Markets await the Fed decision, with any hawkish shift seen as a risk to the demand outlook.

West Texas Intermediate (WTI) Crude Oil steadies on Wednesday, trimming part of its earlier losses as traders react to the latest US Energy Information Administration (EIA) report. At the time of writing, WTI is trading around $58.00, rebounding after hitting an intraday low of $57.54.

The EIA reported a 1.812 million barrel draw in US commercial crude inventories for the week ending December 5, a larger decline than the 1.2 million barrel draw expected, reversing the prior week’s 574,000 barrel increase.

However, the broader outlook for oil remains tilted to the downside. Traders stay cautious as oversupply worries continue to dominate sentiment. US energy officials recently projected that domestic crude production will rise to a record 13.6 million barrels per day this year, adding to concerns that supply growth is outpacing demand.

Market focus now shifts to Thursday’s OPEC Monthly Oil Market Report, where traders will look for updated forecasts on global demand, production trends, and the supply outlook heading into 2026.

Traders are also watching the Federal Reserve’s policy decision due later in the day. A 25 basis point (bps) rate cut is widely expected, but uncertainty around the Fed’s guidance has kept risk appetite subdued. Any hawkish signal that prompts traders to scale back expectations of continued easing in early 2026 could soften the outlook for energy demand, adding another headwind for Crude in the near term.