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).