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WTI subdued below $ 47 ahead of US data, API report

FXStreet (Mumbai) - WTI oil trades around the cheapest levels seen over the past one week and remains pressured as markets turn cautious ahead of the weekly API crude reserves report.

WTI capped below H1 R3

Currently, WTI trades 0.20% lower at 46.58, supported above 46 barrier. Oil prices extend the downward trajectory into a third day on Wednesday as persisting oversupply worries and mounting China slowdown fears continue to weigh on the black gold prices.

On Tuesday, IEA monthly report noted, "A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels - should international sanctions be eased - are likely to keep the market oversupplied through 2016."

Moreover, falling imports and price pressures in China, the world’s 2nd largest oil consumer, added to negative global sentiment, thus keeping prices undermined.

Later in the day, the American Petroleum Institute (API) is due to publish its weekly stockpiles data for the week to October 9, with markets expecting a rise of about 2.2 million barrels in US crude inventories, versus + 3.1 million barrels booked a week before.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 46.95/47 (Today’s High & round number) levels above which gains could be extended to 48.43 (Oct 13 High) levels. Meanwhile, support is seen 46 (round number) levels from here losses could be extended to 45.03 (50-DMA).

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