WTI extends the advance above $ 57 mark, US rigs count, NFP eyed

WTI (oil futures on NYMEX) broke higher from its Asian consolidative mode and accelerated its advance to regain the $ 57 mark heading towards the US payrolls and rigs count release due later today.  

WTI: Will the bounce sustain?

Despite the relentless rise seen in the US dollar across its main competitors, WTI stands resilient, as the bulls derive support from strengthening Chinese crude oil demand, as reflected by today’s Chinese imports data, as reported by the China Customs. China's crude oil imports rose to 37.04 million tonnes in November, or 9.01 million barrels per day (bpd), the second highest on record.

However, it remains to be seen if the black gold sustains the break higher on the US payrolls and drilling activity report, as these remain the main risk events that will affect the oil-price direction in the coming days.

Meanwhile, on Wednesday, the EIA crude inventory report showed that the US crude stockpiles fell by 5.6 million barrels in the week to Dec. 1, to 448.1 million barrels. Although, the data failed to lift the prices as rising US oil output levels continue to dampen the sentiment around oil.   The US oil production climbed by 25,000 barrels per day (bpd) to 9.71 million bpd.

At the time of writing, WTI gains +0.35% to $ 56.89 while Brent rises +0.47% to 62.50 levels.

WTI Technical Levels

Higher-side levels: $ 57.37/38 (20 & 10-DMA), $ 57.50 (psychological levels), $ 57.92 (Dec 5 high)

Lower-side levels: $ 56.40 (daily pivot), $ 55.83 (2-week lows), $ 55.36 (50-DMA)