WTI consolidates above $ 53 ahead of EIA report

After having booked almost 2% gains a day before, oil futures on NYMEX are seen extending its consolidative mode so far this session, as sentiment remains underpinned amid expectations of an inventory drawdown and OPEC cut deal in compliance.

Oil eyes US jobs, EIA stockpiles data

Currently WTI trades modestly flat and holds above $ 53 mark, as the bulls gather pace for the next push higher. Oil prices reverse a dip to session lows and now look to stabilize amid fresh reports of Iraq kicking-off output cut in line with the OPEC decision.

Moreover, ongoing weakness around the greenback across the board, combined with bullish API crude US crude oil inventories dropped 7.4 million barrels over the previous week, posting a much larger draw that expected. Markets had predicted a draw of around 1.7-2.2 million barrels for the last week.

Focus now remains on the USD price-action ahead of the US ADP jobs data for fresh momentum on the USD-sensitive oil, while the EIA crude inventories report will hog the limelight later in the NA session.

WTI technical levels

A break above $ 54 (round figure) could yield a test of Dec 12 high of 54.57. While a breach of support at $52.26 (Dec 23 low) would expose the daily S3 of $51.19.