WTI struggles to extend the bounce above $41, eyes on EIA data

WTI (futures on NYMEX) stalls its corrective declines from monthly tops of $41.88 and regains the $41 mark in the last hour, staging a quick rebound from daily lows of $40.86.

The US oil witnessed a quick uptick, as the buyers seek to regain near-term control amid expectations of a drawdown in Energy Information Administration (EIA) weekly US crude inventories data, due to be published later on Wednesday at 1430 GMT.

Despite the latest leg higher, the bearish pressure persists on the higher-yielding oil amid souring market mood, as the news of stricter restrictive coronavirus measures in the UK weighs.

The black gold also fails to benefit from the rally in the Treasury yields and broad-based US dollar weakness, in the wake of the renewed optimism on a likely US fiscal stimulus deal ahead of the November election.

The focus now remains on the EIA weekly crude stocks data and the broader market sentiment for near-term trading opportunities in oil.

WTI Technical levels

“…bullish reading on the 14-day relative strength index and the positive value on the MACD histogram, suggests scope for a breakout above $41.72. That would expose the 2020 high of $43.78 reached on Aug. 26. A bearish reversal would be confirmed if the resistance at $41.72 holds and sends prices back below Tuesday's low of $40.46,” FXStreet’s Analyst Omkar Godbole explained.

WTI Additional levels