WTI crude oil trimmed some of its strong gains, albeit has been able to hold on to its daily gains beyond $49.00/barrel mark.
Currently trading around $49.20 level, the black gold extended previous session's rebound from multi-day lows amid cautious optimism that OPEC could extend its production-cut agreement, aimed towards rebalancing the oil market, further beyond June.
Adding to this, a fresh wave of greenback selling pressure, with the key US Dollar Index sinking below the 100.00 mark to multi-week lows, was further seen boosting demand for dollar-denominated commodities, including oil.
Further gains, however, remained capped as investors now looked forward to weekly API report on the US crude stockpiles and refined products before placing any fresh bullish bets. The official data from the Energy Information Administration (EIA) will be released Wednesday, with consensus forecast anticipating a rise in the US stockpiles.
Technical levels to watch
Bulls would be eyeing for a decisive move beyond $49.50-60 area, above which the commodity seems all set to reclaim the key $50.00 psychological mark and head towards testing its next hurdle near $50.75-80 region. On the downside, retracement back below the $49.00 handle, leading to a subsequent drop below $48.80 level, is likely to accelerate the slide back towards $48.40 intermediate support ahead of sub-$48.00 level.
- R3 49.18
- R2 49.09
- R1 49.02
- PP 48.93
- S1 48.86
- S2 48.77
- S3 48.70