Oil futures on NYMEX extended its recent upward trajectory and went to hit fresh four-month highs at $ 50.55 in late-Asia, after having witnessed a bullish opening gap.
The renewed strength seen in the black gold is mainly driven by increasing demand for crude from the US refineries, as they continue its recovery in production from the disruption caused by Hurricane Harvey.
Moreover, the sentiment also remains lifted amid a drop in the US rigs count, as reflected by Friday’s report from Bakers and Hughes oilfields services that showed that the US energy firms cut 7 oil rigs in the week to Sept. 15, bringing the total to 749, the lowest since June.
However, further upside appears to lack follow-through, as investors remain nervous ahead of the weekly crude supply reports from the US and FOMC decision. Also, in an evidence of diminishing confidence in oil, traders and hedge funds trimmed their bullish bets on oil last week. Bullish bets on WTI trimmed - CFTC
At the time of writing, WTI trades +0.16% higher at $ 50.52, while Brent steadies at $ 55.65 levels.
WTI technical levels
To the topside, resistances are aligned at $ 51.00 (round number), followed by $ 52 (week ended May 20 high) and $ 52.50 (psychological levels). Supports are located at $ 49.98 (5-DMA), 49.05/48.99 (10 & 200-DMA) and 48.36/21 (50 & 20-DMA).
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