WTI crude oil remains in consolidation mode, forming lower highs and finding support around $57 per barrel to create a descending triangle pattern. Price has just bounced off support and could be due for a test of resistance at $58 per barrel.

The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside or that the top of the triangle would likely hold rather than break. The moving averages are also holding as dynamic resistance at the moment.

Stochastic is heading south but dipping into oversold territory to reflect exhaustion among sellers. Turning higher could draw buyers back in and lead to a test of the triangle resistance from here. RSI also seems to be pulling up on its move down so crude oil might follow suit.

The commodity barely had a bullish reaction to the OPEC output deal extension as concerns about a review in June could lead to the deal being called off earlier than expected. Apart from that, rising oil rig counts and a likely build in stockpiles could keep price gains in check.

The American Petroleum Institute just reported a large draw of 5.481 million barrels of United States crude oil inventories for the week ending December 1, larger than the projected reduction of 3.507 million barrels. However, crude oil still tumbled as the same report indicated a massive build this week of 9.196 million barrels, which could continue to put downward pressure on energy overall.

The EIA is set to report is data later today and analysts are predicting a draw of 3.2 million barrels. Data came in closely in line with expectations the previous week but the reopening of the Keystone Pipeline could have an impact on US supply this time. Recall that the facility was temporarily shut down due to a spillage, capping Canadian oil from flowing to the US back then.