WTI in bullish consolidation sub-$54 mark ahead of EIA data

WTI (oil futures on NYMEX) is posting small gains on the 53 level in European trading so far this Thursday, as the bulls take a breather before the next push higher.

The black gold extended the recent recovery momentum in the Asian session and renewed a three-week high at $54.09, as the sentiment was lifted by supply disruption concerns and easing coronavirus impact concerns amid China’s support measures.

The latest reports that the Libyan ports and oilfields were shut down due to ongoing conflict cheered the oil bulls. Moreover, the US sanctions on Russian oil giant Rosneft’s trading subsidiary, accusing it of providing a financial lifeline to Venezuela’s government, also kept the buoyant tone intact around oil.

Additionally, the rife expectations that the OPEC and its allies (OPEC+) will extend the output cuts rendered oil positive. However, the bulls seem to have cautious for now, as the risk sentiment remains fragile amid negative European equities and S&P 500 futures.

Further, an increase in the US weekly Crude Stocks data, as reported by the American Petroleum Institute (API) late Wednesday, also keeps a check on the upside. The API reported an increase of 4.2 million barrels of crude oil in the U.S. crude oil inventories for the week ending Feb. 14.

All eyes now remain on the US Energy Information Administration (EIA) weekly crude inventory report due to be published at 1600 GMT for a fresh trading impetus.

WTI Technical levels to consider