WTI: Rally stalls ahead of US drilling data, defends $ 45 mark

Oil futures on NYMEX faced rejection near Thursday’s tops and drifted slightly lower, paring gains in a bid to test $ 45 support, as markets turn cautious ahead of the US rigs count data.

The black manages to keep the bid tone intact for the seventh straight session, and looks to book the first weekly gain in six weeks, as the bulls continue to derive support from reducing US crude reserves. The latest EIA data on Wednesday showed that the weekly US crude oil production witnessed the biggest decline in weekly output since July 2016.

However, further upside looks limited amid oil-price forecasts slashed by Goldman Sachs, while no talks of deeper OPEC oil output cuts on the table could also keep the corrective rally in check. UAE OilMin: There are no talks about deeper OPEC cuts - BBG

Oil prices eagerly await the US rigs count data due to be reported by Bakers and Hughes oilfield services company later in the NA session. At the time of writing, WTI trades +0.60% higher at $ 45.20, while Brent also rises +0.60% to 47.90 levels.

WTI technical levels 

Higher side: $ 45.50 (psychological levels), $ 46 (zero figure), $ 46.19 (Jun 14 top)

Lower side: $ 44.56 (20-DMA), $ 44.17 (5-DMA), 43.67 (Jun 28 low)