WTI prints 4-day highs above $ 51, eyes on API report

WTI (US oil futures on NYMEX) extended its rebound from more-than two-week lows into a third day today, as the sentiment around the black gold remains underpinned by hopes of a tighter market, after having stuck in global supply glut over so many years.

Moreover, oil prices also derive support from the IMF’s upbeat global growth forecast, after it reported yesterday that the global growth is projected to rise to 3.6 percent in 2017 and 3.7 percent in 2018.

However, further upside appears capped as the downward revision to the oil-price forecast by the IMF continues to weigh on investors’ minds. Further, oil traders refraining from creating positions ahead of the FOMC minutes, as it may have a major impact on the US dollar, in turn influencing the USD-sensitive oil.

Also, anticipation ahead of the US weekly crude inventory report, keeps the bulls on the defensive. At the time of writing, WTI trades marginally higher and flirts with $ 51, while Brent steadies at $ 56.60.

WTI Technical Levels

Fawad Razaqzada at Forex.com noted: “With WTI also residing above both its 50 and 200 daily moving averages, and above a broken downward trend, I cannot possibly be bearish at this point in time. Granted, things can and will change quickly in the markets, but taking all the technical indications into consideration, the chart is telling us that oil prices want to push higher. The first level of potential resistance is now not too far off at $51.25, previously support. Above this level, $52.40 would be the index hurdle to clear. On the downside, short-term support is seen at $50.75.”