FXStreet (Mumbai) – WTI oil futures on the Nymex extends its recovery in the European morning largely on the back of a pause in the recent US dollar rally, however, the gains were capped amid rising supply worries ahead of EIA weekly stockpiles report.
WTI recovers from five week lows
Currently, WTI trades 0.43% higher at 57.75, recovering from fresh five week lows of 57.38 Oil prices extended its overnight gains as the greenback took a breather, but gains were limited on fears over the supply glut, as US crude stockpiles rose despite market expectations for another decline.
The latest data on US crude inventories disappointed traders on Wednesday as the American Petroleum Institute reported a 1.3 million barrels increase for the week to May 22, following three weeks of declines, while analysts had expected a fall of 1 million barrels.
The Energy Information Administration is due to deliver its report later in the day, and the market bets on a 1.2 million barrels outflow.
Meanwhile, the US dollar index trades flat today at 97.29 pushing dollar-priced commodities higher as it makes them cheaper for traders holding other currencies.
Technical Levels
WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 59.50 levels. Meanwhile, support is seen at 57 levels from here losses could be extended to 55.0 levels.
(Market News Provided by FXstreet)