WTI jumped to $55 after EIA report showed large draw in US crude oil stocks

• Crude oil stocks in the US decreased by 1.7 million barrels.
• OPEC will reportedly discuss deeper output cuts in December.

Crude oil prices gained traction in the last hour on the back of the weekly United States (US) crude oil stock report published by the Energy Information Administration (EIA). The barrel of West Texas Intermediate (WTI) was last seen trading at $55, adding 1.3% on a daily basis.

OPEC is said to discuss deeper production cuts

On Tuesday, citing sources with direct knowledge of the matter, Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and its allies were planning to discuss deeper oil output cuts to counter the dismal oil demand growth outlook at their next meeting in December and allowed the WTI to close the day with a gain of more than 1%.

Although the WTI struggled to continue to push higher and stayed in a consolidation phase during the first half of the day, the EIA's crude oil stock report triggered a fresh buying wave.

The EIA said commercial crude oil inventories in the US decreased by 1.7 million barrels for the week ending October 18 compared to analysts' estimate for a build of 2.2 million barrels.

Technical levels to watch for