WTI retakes $54.00 mark, now eyeing yearly high

WTI crude oil extended overnight strong gains and rose for the fourth straight session on Wednesday amid holiday-thinned market liquidity. 

Currently hovering around $54.00/barrel mark, having posted a session high near $54.30 region, the black gold moved within striking distance of 17-month high touched on December 12, with investors now looking forward if OPEC and non-OPEC members would abide by the oil output deal and curtail production beginning next month. 

Meanwhile, resurgent US Dollar buying interest, which tends to weigh on dollar-denominated commodities - like oil, hindered the commodity's bullish momentum. 

Later during NY session, traders will confront the release of API report on US weekly crude stocks, while the official EIA data will be released on Thursday.

Technical levels to watch

From current levels, multi-month highs near $54.50 region is likely to act as immediate resistance above which a fresh bout of short-covering is likely to lift the commodity towards $55.00 psychological mark. On the downside, $53.55-50 area now seems to protect immediate downside, which if broken is likely to accelerate the slide towards $53.00 handle, en-route its next intermediate support near $52.50 level.