WTI hits fresh weekly tops near $ 49, awaits EIA report
|Oil futures on NYMEX extend gains for the second straight session on Wednesday, now printing eight-day tops, as sentiment remains underpinned by concerns over Libyan supply disruptions and renewed hopes of an extension of the OPEC production cuts beyond June.
However, it remains to be seen if the black gold sustains the recent rebound, as rising inventory levels in the US continue to add to the omnipresent oversupply worries. The API crude inventory report published late-Tuesday showed a bigger-than expected build in the US stockpiles, rising by 1.91 million barrels.
Later today, the Article 50 trigger will garner a lot of attention and drive the risk trends, which will have a significant influence on risky assets such as oil. Meanwhile, the US EIA will release the official data on inventories in the American session.
WTI technical levels
A break above $ 49 (psychological levels) could yield a test of $ 49.31 (200-DMA), beyond which $ 50 (key resistance) could be tested. While a breach of support at $ 47.50 (psychological levels) would expose the 4-month lows of $ 47.01, below which downside opens up for a test of $ 46.50 (classic S2/ Fib S3).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.