WTI clocks 3-week highs at $ 49.75 on Libya supply disruptions

Oil futures on NYMEX extends its rebound into a fourth day this Thursday, and rose to the highest levels since March 10, in the wake of supportive demand-supply fundamentals.

The black gold continues to benefit from looming concerns over-supply disruptions in Libya, while falling US gasoline inventories suggests tightening oil markets in the US, which also keep the upbeat tone intact around oil.

Over the last hour, the bulls are struggling to extend gains, as sellers appear to have queued up near $ 50 mark – psychological levels. Also, record high inventory levels and surging production in America continue to the rallies in check. According to the EIA data released yesterday, the US crude inventories rose 867,000 barrels to a record of nearly 534 million barrels.

Attention now remains on the USD dynamics ahead of the US final GDP report and Fedspeaks, which will have some bearing on the USD-sensitive oil.

WTI technical levels        

A break above $ 50 (psychological levels) could yield a test of $ 50.42 (classic R2/ Fib R3), beyond which $ 50.84/51 (Mar 3 high/ key resistance) could be tested. While a breach of support at $ 48.70 (5-DMA/ classic S1) would expose 10-DMA support of $ 48.28/48, below which downside opens up for a test of $ 47.50 (round figure).