WTI looking to stabilize above $ 49.50

WTI (US oil futures on NYMEX) extended its downside consolidation phase into Europe, now looking to extend the recovery above 49.50 barrier, as the bulls remain well supported above $ 49 threshold.

The black gold is seen struggling to extend the recovery gains on the back of slowing volumes in observance of the Columbus Day holiday in the US. However, oil continues to maintain a buoyant tone amid a drop in the US rigs count and on expectations that Saudi Arabia will do more to restrain its output.

Further, reports of the production restart at the key US oil refineries on Monday, following the Hurricane Harvey induced shut down, would prop up crude demand, This also added to the renewed uptick seen in oil prices.

Markets now look forward to the US crude supplies reports due out in the week ahead for fresh momentum. At the time of writing, WTI advances +0.47% to $ 49.52, while Brent steadies at $ 55.65.

WTI Technical Levels

Slobodan Drvenica at Windsor Brokers Pvt Ltd noted: “Immediate targets lay at $49.20 (Fibo 50% of $45.57/$52.84 ascend) and $48.98 (rising 55SMA), which guard next pivot at $48.35 (Fibo 61.8%). Broken 20SMA ($50.38) is expected to limit corrective upticks. Res: 50.00; 50.38; 50.80; 51.02 Sup: 49.39; 49.20; 48.98; 48.35.”