WTI stuck in ranges with uncertainty around OPEC and the dollar

WTI has been volatile again in a range between 52.25 and 53.55 on Thursday as the dollar reacts to mixed US data and the EIA weekly oil inventories came in as -7051K vs the -2000K expected.

The weekly energy data from the EIA came in as follows:

Prior was +614K
Gasoline inventories +8307K vs +1000K expected
Distillates +10,051K vs -800K expected

US Dollar still below 102.00 on ISM

WTI has dropped from $54.58 highs this week while the DXY is mixed as investors try to understand the outlook for the Fed, rates, Trump and the macro picture for 2017 markets. At the same time, the OPEC output cut accord with non-OPEC members is also a fragile scenario and markets are nervous that the agreement could fall apart as prices rally and countries that rely on oil income cash in on the opportunities, supplying more than agreed.  However, there are news headlines reporting that the Saudi's have cut oil output to fully implement the OPEC pledge. 

The price is trading between key technical levels and moving averages around the 200 and 100 dma's. The price is range bound between the boundaries of the Jan low at $51.51 and $54.58 with risk to the downside on a break of the $50.00 level for $49.33 and 7th Dec low.