Oil futures on NYMEX stalled its recovery from multi-month troughs just ahead of $ 44.50 barrier, as investors turn cautious ahead of the API crude stockpiles data
WTI: Eyes API inventory data for fresh direction
Oil prices are looking to stabilize after yesterday’s steep drop to seven-month lows, although remains exposed to downside risks in the near-term amid omnipresent oversupply concerns, which outweighs any efforts made by the OPEC and non-OPEC producers to limit supplies. The US drillers’ data on Friday showed a record 22nd consecutive week of increases in the US oil rig numbers.
Additionally, oil prices also remain undermined amid reports of Libya's oil production having risen more than 50,000 bpd after the state oil company settled a dispute with Germany's Wintershall.
Markets now look forward to the latest US crude stockpiles data from the API due later tonight for fresh insights on the US supply-side scenario. At the time of writing, WTI trades flat at $ 44.42, while Brent is muted just below $ 47 mark.
WTI technical levels
A break above $ 45/45.06 (round number/ Jun 19 high) could yield a test of $ 45.55 (classic R2/ Fib R3) beyond which $ 46 (key resistance) could be tested. While a breach of $ 44.05 (multi-month low) would expose $ 43.50 (psychological levels), below which downside opens up for a test of $ 43.01 (classic S3).
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