WTI eyes a test of $ 57 mark ahead of EIA data
- DXY recovery picks-up pace in Europe.
- Rise in gasoline stocks offset a drawdown in crude inventories.
- Focus on EIA crude inventory report.
WTI (oil futures on NYMEX) extends its range-trade into a third day today, although remains on offers above the $ 57 mark, as markets await a fresh impetus for fresh direction.
WTI looks vulnerable below $ 57
The black gold broke its Asian consolidative mode to the downside, as the US dollar recovery gathers steam across the board amid widespread risk-aversion. A stronger US dollar makes the USD-denominated oil expensive for the foreign buyers and vice-versa.
Moreover, the rise in the US gasoline and distillate inventories last week, as shown by the API data outweighed the drop in crude stockpiles during the same period. Rising refined products inventories usually imply weakening fuel demand, which weighed down on the sentiment around oil.
Furthermore, persistent concerns over rising US output levels also collaborate to the downside in the commodity, undermining the OPEC and Russia’s efforts to reign in crude supplies.
Later today, the EIA crude inventory report could provide the next direction in oil prices. At the time of writing, WTI drops -0.61% to $ 57.28 while Brent declines -0.40% to $ 62.61.
WTI Technical Levels
Higher-side levels: $ 59.03 (2-year highs), $ 60 (psychological levels), $ 61.82 (June-mid 2015 high)
Lower-side levels: $ 56.82/75 (Nov 29 & 30 low), $ 56.32 (Nov 21 low), $ 56.00 (zero figure)