WTI: Recovery gains traction above $ 52 on Iraqi output cut

After having booked 4% loss on Monday, oil futures on NYMEX edge slightly higher, as investors digest oil output cut reports from Iraq and Kazakhstan.

Oil awaits API stockpiles data

Currently WTI trades +0.62% higher at session tops of $ 52.34, extending recovery from four-week lows. Oil prices are seen on a gradual recovery mode so far this session, and catch fresh bids after headlines hit the wires that Iraq and Kazakhstan, both slashed its production levels in line with the OPEC output cut deal reached last month.

Iraq cuts 160K bpd under OPEC production cut deal, while Kazakhstan also slashed its oil output by 20k bpd. Russia was also said to cut its output levels this month.

Moreover, ongoing USD weakness also aids the recovery in the black gold, as focus shifts towards the US API crude stockpiles data due to be reported later on Tuesday.

On Monday, oil prices witnessed a massive sell-off amid concerns that record high Iraqi crude exports and non-compliance of the OPEC deal.

WTI technical levels

A break above $ 53 (round figure) could yield a test of Jan 9 high of 53.83. While a breach of support at $51.21 (daily S1) would expose the 50-DMA support of $51.33.