WTI recovers to $ 54 ahead of EIA inventory report

Dhwani Mehta FXStreet

Oil futures on NYMEX reverse more-than half the overnight sell-off so far this session, with all eyes now turning towards the official US government crude reserves data for next direction.

Oil: Focus shifts to API inventory data

Currently WTI trades -0.40% lower around $ 53.85, having failed to sustain the recovery above $ 54 mark. Oil prices attempt a tepid-recovery on Thursday, although remains vulnerable, despite expectations of a drawdown in the US crude stockpiles to be reflected by the EIA report, which will be published later in the NA session.

On Wednesday, oil prices failed to cling onto gains and dropped sharply in the overnight trades, in response to a surprise build shown in the API inventory report. Data released by industry group the API showed a 4.2 million barrel build in the US crude stocks in the week to Dec. 23. Markets had predicted a decline of 2.1 million barrels.

WTI technical levels

A break above $ 54.07 (daily high) could yield a test of Dec 12 high of 54.57. While a breach of support at $53 (zero figure) would expose the Dec 23 low of $52.26.

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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