Crude oil prices gained traction in the first half of the NA session, helping the barrel of West Texas Intermediate retracing a portion of its daily losses. As of writing, the barrel of WTI was trading at $50.55, still losing 1.45%, or $0.75, on the day.
After closing the first three days of the week with gains, crude oil prices came under pressure in the early Asian session on Thursday after the American Petroleum Institute (API) announced that the U.S. crude oil stocks rose 3.097 million barrels at the end of last week, surpassing the market expectation of a 1.8 million barrels drawdown. On the other hand, in a report earlier today, the Energy Information Administration revised its forecasts of crude prices in the U.S. up to $50.57, however, also announced that it expected the production in to increase 0.8% to 9.92 million barrels a day.
Commenting on that report, Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt, "the tone of the IEA report was bearish because it suggested that demand for OPEC crude next year would not be sufficient to absorb all the available supplies," told Reuters.
After easing to a daily low at $50.23, the barrel of WTI gained traction and staged a modest recovery as the weekly crude oil stock report released by the EIA showed a 2.8 million barrels drop.
The barrel of WTI faces the first technical support at $50 (psychological level) ahead of $49.10 (50-DMA) and $48.10 (Sep. 13 low). On the upside, resistances align at $51.50 (daily high), $52 (psychological level) and $52.85 (Sep. 28 high).
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.