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WTI recovers to $ 41, EIA report, FOMC in focus

FXStreet (Mumbai) - After falling almost $ 1.5 on Tuesday, the US oil embarks upon recovery to 41 barrier, as market sentiment remains lifted on the latest API report.

WTI forming lower tops on daily charts?

Currently, WTI trades 0.86% higher at 41.01, trading in a narrow range. Oil prices stage a minor recovery this session after having booked steep losses on Tuesday, as the API weekly report positively surprised oil markets. As per the report, crude stocks in the US fell by 482,000 barrels in the week to November 6, against a forecast about a 1.6 million barrel rise.

However, the recovery in oil prices is expected to remain short-lived as the persisting oversupply worries continue to weigh amid rising demand for the USD backed by increased Dec Fed rate hike bets. Later in the day, the EIA weekly stockpiles report and the FOMC minutes will have major impact on oil prices.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 42 (round number) above which gains could be extended to 42.25 (Nov 16 High). While to the downside, the immediate support is at 40.22 (Nov 13 Low), below which the prices could drop to 39.86 (Aug 21 Low).

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