WTI in a bullish phase of consolidation above $ 46.50

Oil futures on NYMEX paused its two-day rally in the European morning, now defending $ 46.50 barrier amid broad based US dollar recovery and minor-profit taking.

WTI: $ 47 mark still on sight

Having peaked at weekly tops of $ 46.73, oil prices entered a phase of upside consolidation on Monday, now extending the side-trend into Europe, as investors’ digest weekend’s OPEC headlines, citing that OPEC producers’ compliance with cuts dropped to 92% in June.

Moreover, the bulls remain cautious ahead of fresh weekly supply reports from the US due on Tuesday and Wednesday, while the US drilling activity data showed two more oil rigs added in the week to July 14, bringing the total to 765.

Meanwhile, the black gold continues to derive support from reports of slowing US production and stronger Chinese demand. The latest stronger-than expected Chinese economic releases underpin oil demand from the world’s second largest oil consumer.

At the time of writing, WTI trades modestly flat at $ 46.61, while Brent trades +0.25% higher around 49 handle.

WTI technical levels 

Higher side: $ 46.73 (weekly high), $ 47.10 (Jul 3 high), $ 47.50 (psychological levels)

Lower side: $ 45.51 (10-DMA), $ 44.51 (Jul 5 low), $ 43.67 (Jun 28 low)