WTI little changed near mid-$50s, API report in focus

WTI (US oil futures on NYMEX) is seen moving back and forth in a tight range around the midpoint of 50 handle, as markets remain in a wait and see mode ahead of the US API crude inventory data release. 

The black gold is seen consolidating yesterday’s sharp sell-off, triggered by the outcome of the latest Reuters survey that found the OPEC oil production to have risen by 50k bpd in Sept.

Today’s lack-luster trading seen in oil prices can be also attributed to profit-taking by the oil traders, as they gear up for the US crude supplies reports due on the cards today and tomorrow, which are likely to set the tone for the oil markets in the coming days.

Moreover, markets digest the latest remarks from the Russian Energy Minister Novak, citing that a meeting between Russia and OPEC to discuss the oil cut deal implementation is scheduled later this week.

At the time of writing, WTI trades modestly flat at $ 50.45, while Brent steadies near $ 56 levels.

WTI technical levels 

OctaFx Analyst Team noted: “The American crude oil benchmark WTI demonstrated a confident descending movement where it may test the strong support at 50.00. Breaking through this psychologically important mark may become a trigger for further falls to 48.50 and 47.75. On the other hand, the RSI on the 15-minute chart is in the oversold zone that points to an increased possibility of a price rebound with the first target at 51.00.”