The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories increased by 0.768 million barrels in the week ended November 13. Economists had forecast a build of 1.650 million barrels.

At the same time, gasoline stocks rose by 2.611 million barrels, while analysts had expected a gain of 0.087 million barrels. Distillate stocks plunged by 5.217 million barrels, while analysts had forecast a decrease of 1.457 million barrels.

Meanwhile, oil production in the U.S. surged by 400,000 barrels a day to 10.900 million barrels a day.

U.S. crude oil imports averaged 5.3 million barrels per day last week, down by 245,000 barrels per day from the previous week.

FXStreet notes that gold (XAU/USD) has recently failed just ahead of the 1973.80 mid-September high but continues to hold over the 1850 low. For now, strategists at Commerzbank are neutral.

“Should a breach of the 1850 support be seen we would allow for further losses to the 200-day ma at 1792.24 and possibly the May high at 1765.61. This in turn protects the 1721.15 55-week ma.” 

“In order to regenerate upside interest, the market will need to regain the mid-September high at 1973.8, for a rally to the 78.6% retracement at 2025 which guards the target band of 2070/2088."