Oil recovers to move back above $47.00 handle

WTI crude oil wavered between tepid gains and minor losses, struggling for direction as a surprise rise in US crude inventories has renewed concerns of a global supply glut. 

Having posted a session low at $46.60, oil attempted a tepid recovery and has now managed to move back above $47.00 handle. 

On Wednesday, the black gold posted heavy losses after the EIA report showed US commercial stockpiles of crude oil and refined products increased by 6.6 million barrels during the week ended August 19. Moreover, a broadly stronger greenback exerted further selling pressure on dollar-denominated commodities, including oil. 

On Thursday, mixed US Dollar performance is seen helping the commodity to make a recovery attempt ahead of US durable goods orders and weekly jobless claims data, scheduled for release later during NA trading session. 

Technical levels to watch

Sustained recovery momentum above $47.00 mark seems to assist the commodity towards $47.50 resistance, above which the near-term bearish bias might get negated and assist the commodity to resume with its near-term upward trajectory. On the downside, $46.60-55 region now seems to have emerged immediate support, which if broken decisively seems to open room for additional downfall initially towards $45.80 intermediate support and eventually towards $45.30 strong support area.