WTI: Recovery loses steam at $ 49.50, API report eyed

Oil futures on NYMEX extends yesterday’s rebound from four-day troughs and regains $ 49 handle in the European session this Tuesday, only to face fresh supply just shy of $ 49.50 barrier, as investors turn cautious heading into the US API crude stockpiles report due later in the American session.

Oil prices turned positive for the first time in four day on renewed hopes that the OPEC oil output cut deal could be extended beyond June, which brought the much-needed respite to oil markets.

However, rising US production poses a big threat, as markets believe that it would fill the gap the OPEC production cuts leave.

WTI technical levels        

A break above 50/50.11 (psychological levels/ Mar 10 high) could yield a test of $ 50.64/84 (10-DMA/ Mar 9 high), beyond which $ 51.50 (key resistance) could be tested. While a breach of support at $ 48 (round number) would expose the 4-month lows of $ 47.09, below which downside opens up for a test of $ 46.50 (psychological levels).

Sell 67%
Buy 33%
100.0%67.0%0657075808590951000
Avg Sell Price 51.90
Avg Buy Price 54.00
Liquidity Distribution
47.1051.7554.6047.1051.7554.60SellBuy

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.