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WTI slips back in the red, stays above $ 64

FXStreet (Mumbai) - WTI oil on NYMEX resumed its downside bias on Tuesday, after a temporary reversal seen on Monday as focus now shifted back towards the stockpiles report due later today.

WTI capped below $ 47

Currently, WTI trades 1.30% lower at 46.34, supported above 46 mark. US oil dropped this session as markets resorted to profit-booking after the recent rally ahead of the weekly stockpiles report, in light of the persisting oversupply worries.

Both the oil benchmarks surged in the previous session, boosted by expectations that crude reserves in the US were shrinking. However, markets believe the rally was more likely a technical correction from heavy losses booked last week.

As usual, the American Petroleum Institute (API) will deliver its weekly report on US crude stockpiles, with traders predicting a fall of about 2.1 million barrels for the week to September 18.

While the government's Energy Information Administration (EIA) is scheduled to publish its data on Wednesday, with a drop of 1.65 million barrels expected.

On data front, markets await China’s manufacturing PMI due for release tomorrow. The reading is expected to edge up only slightly to 47.5 points after August's 47.3, which was the lowest reading since March 2009. China remains the world’s second largest oil consumer.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 47.03 levels above which gains could be extended to 47.71 levels. Meanwhile, support is seen 44.82 levels from here losses could be extended to 43.

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