Oil gives back 90% of gains, down to test $52.80 support

Despite an earlier bid on Wednesday, WTI has dropped significantly and is headed towards a break of $52.80 support to test the lows of the day down at $52.72 having reached a high of $53.51.

Oil was close to an 18-month high on continued hype over the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producing nations who recently agreed to cut output in the new year. However, there is some doubt over whether the cartel can stick to promises as prices rise and opportunities unfold to benefit from higher prices with some nation's economies depending on petroleum sales. Meanwhile, the price gave back earlier gains when the API inventory survey showed a build of 4.20mbbls.

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