Crude oil prices flat, analysts split on market direction

Nov. 27 (UPI) -- Crude oil futures were nearly flat Tuesday morning, amid divided opinions as some analysts point to the likelihood of increased inventories adding to bearishness, while others see the bigger selloff as mostly done.

Around 10:00 a.m. EST WTI front-month futures traded at $51.77 per barrel, a 0.3 percent increase, while Brent front-month traded at $60.73, a 0.3 percent increase.

The markets are "basically flat. Do think the risk is to the downside especially on the global macro front if we see the equity markets take a risk-off attitude," Tariq Zahir, managing member of investment-advisory firm Tyche Capital Advisors, told UPI.

"We are expecting a build in crude inventories and in Cushing, as well as U.S. production to show at least the record numbers of production just under 12 million barrels per day," he added.

The American Petroleum Institute will release figures on inventories Tuesday afternoon, while the Energy Information Agency will issue its weekly report on Wednesday after 10:30 a.m. EST.

Amir Hekmati, oil futures spec trader at Lucid Energy, told UPI that he believes that "liquidation is nearing its end."

"Short positions are beginning to be trimmed by funds, and long positions have reached a low of around 750 million barrels, a number not seen since January of 2016," Hekmati said.

"The ratio of oil to natural gas is at a significant high, another indication the selloff in crude is nearing its end," Hekmati added.

"The WTI front-month reached the $50 per barrel level and found support and is currently consolidating," Hekmati said.

Oil producing nations will meet December 6 in Vienna. Anticipation of some agreement on production cuts were widely anticipated after October and November left significant declines in crude oil prices, which are down from a peak of $86 per barrel in early October.

A selloff during the Thanksgiving holiday-shortened week increased the anticipation that cuts will be announced. The selloff last week was followed by some recovery Monday.

WTI front-month prices closed Monday at $51.63 per barrel, down from $57.20 per barrel a week earlier. Brent front-month futures ended Monday at $60.56 per barrel, down from $66.79 per barrel on Monday of last week.