Oil trades mixed: WTI trims gains ahead of US API report

Oil prices on both sides of the Atlantic traded in opposite direction on Tuesday, with the US oil (WTI) supported on supply disruption while Brent trades on the back foot amid broad-based US dollar strength.

WTI (oil futures on NYMEX) extends its upward correction into a fifth day, with thin markets fuelling the gains while ongoing supply reductions from Canada to the US due to pipeline reductions also remain supportive of the US oil.

Both crude benchmarks continue to derive support from increased expectations of a tighter market this year, as the OPEC output cuts deal extends its positive impact on the oil markets.

The latest headlines reported by Bloomberg cites the Joint Technical Committee of OPEC and non-OPEC members see the pace of oil rebalancing quickening. Meanwhile, the UAE Energy Minister noted that he expects the OPEC oil output deal to extend beyond 2018

Markets now eagerly await the US API crude stockpiles report for fresh insights on the US supply-side scenario, which will shape up the next direction for the prices.

WTI Technical Levels

At $ 62.05, the resistances are aligned at $62.64 (4-day tops) ahead of $63 (round figure) and $63.77 (Jan 19 low). On the downside, the supports are located at $ 61.83 (5-DMA), $60.27 (Feb 8 low) and $ 60 (psychological support).