WTI catches fresh bids, jumps to test $ 44 ahead of API report

Oil futures on NYMEX are on a four-day winning streak, now accelerating the advances in a bid to conquer 44 handle, as investors expect a big drop in the US crude inventories data due to be published by the API later tonight.

After a brief phase of consolidation almost throughout the Asian trades, the bulls regained poise as markets resort to unwinding their oil shorts ahead of the crucial US supply reports.  

However, the recovery appears limited amid persistent supply glut worries, especially after the Libyan oil source reported this morning that the country’s oil output rose to 935k bpd versus 885k bpd seen last week.

Focus now remains on the private sector oil reserves data and official US government figures on the crude stockpiles due later today and tomorrow for fresh direction on oil. At the time of writing, WTI trades -0.80% lower at $ 43.13, while Brent drops -0.78% to $ 45.66 mark.

WTI technical levels 

Mathew Ashley, FX Research Analyst Blackwell Global Investments Limited noted: “One final thing worth mentioning is just how close oil prices are to dipping back into oversold territory as this will be reinforcing support around the $43 handle and capping downside risks. All things considered, there is a decent likelihood of us seeing gains extend moving ahead which now begs the question, where can we expect resistance to come back into play? As shown above, a key resistance level exists around the $46 mark which could prove to be a near-term peak for oil. ”