WTI looks vulnerable below $ 46 amid rising supplies

Oil futures on NYMEX remains under pressure in early Europe, consolidating the downside just ahead of $ 46 mark, a break below which opens doors for a test of the recent lows of 45.84 levels.  

WTI: Focus shifts US drilling report

The black gold keeps losses so far this Wednesday, as the sentiment around the oil markets remain undermined by bearish EIA crude inventories data and rising OPEC supplies.

The US crude stockpiles data as published by the API late-Tuesday showed an increase of 1.6 million barrels in the week to July 14, bringing the total levels to 497.2 million barrels.

Meanwhile, rising output levels from Ecuador, Libya and Nigeria, despite the OPEC output cut deal, also collaborates to the weakness surrounding oil prices.

Moreover, expectations of a decline in the refinery demand from China combined with broad based US dollar recovery further keeps any recovery attempts in check.

Next of note for the commodity remains the EIA crude inventory report due on the cards in the American morning. At the time of writing, WTI trades -0.39% lower at $ 46.23, while Brent drops -0.40% to $ 48.65.

WTI technical levels 

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

Lower side: $ 45.72 (10-DMA), $ 44.51 (Jul 5 low), $ 43.67 (Jun 28 low)