WTI flirts with 2-month tops sub-$ 50.50, API data eyed

Dhwani Mehta FXStreet

Having booked the best month so far this year, oil futures on NYMEX kicked-off August on the firmer footing and now consolidate yesterday’s massive rally ahead of the API crude stockpiles data.

WTI: $ 51 mark on sight

The bulls are bidding up for the next leg higher, as the sentiment remains buoyed by strengthening US fuel demand, especially higher gasoline demand, and falling US inventories.

Moreover, analysts call for more upside risks looming for the US oil, in light of the latest US oil-related sanctions against Venezuela, following Venezuela's Sunday election, which Washington denounced as a "sham."

Meanwhile, oil markets shrugged-off latest headlines citing the OPEC exports have risen in July to 26.68 million bpd.

All eyes now remain on the US weekly API crude inventory report due later today, which will help confirm whether the resurgence in the US oil demand is not temporary. At the time of writing, WTI trades +0.40% higher at $ 50.38 while Brent rises +0.21% to $ 52.84.

WTI technical levels

The resistances are aligned at $ 50.50 (psychological levels), $ 51.06 (May 22 high), and $ 51.79 (May 23 high) while supports are located at $ 49.89 (200-DMA), $ 49 (round figure), $ 48.37 (10-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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