US benchmark West Texas Intermediate (WTI) crude oil prices traded around $67.90 on Thursday (11/14). WTI prices recovered slightly amid a surprise drop in crude oil. However, a stronger US Dollar (USD) in general may cap gains.

The American Petroleum Institute (API) weekly report showed crude oil stockpiles fell last week. Crude oil stocks in the United States for the week ended November 8 fell by 777,000 barrels, compared with a build of 3.132 million barrels in the previous week. Market consensus had expected stocks to increase by 1 million barrels.

The black gold's gains may be capped as the US Dollar Index (DXY) rose to its highest level since November 2023 after the US Consumer Price Index (CPI) inflation data for October matched expectations. A stronger greenback makes USD-denominated oil more expensive for holders of other currencies, which could dampen demand.

Further, the Organization of the Petroleum Exporting Countries' (OPEC) latest downward revision to demand growth on Tuesday contributed to the WTI decline. OPEC lowered its global oil demand growth forecasts for 2024 and 2025, citing weak demand in China, India and other regions, marking the producer group's fourth straight downward revision.

Looking ahead, oil traders will be keeping an eye on the US Energy Information Administration's (EIA) crude inventories report, due on Thursday. Additionally, the US Producer Price Index (PPI), Initial Jobless Claims and the Fed statement will be closely watched later in the day.

Source: FXStreet