FXStreet (Mumbai) – WTI oil futures on the Nymex gave back previous gains and rebounded lower in the early European trades, as markets speculate US crude reserves may rise again ahead of Friday’s OPEC meeting.

WTI retreats from 2-week highs

Currently, WTI trades -0.70% lower at 60.84, falling back below $ 61. Oil prices snapped its upward momentum and edged lower this session as traders continue to weigh oversupply concerns.

On Tuesday, the American Petroleum Institute said that crude stockpiles in the US rose by 1.8 million barrels in the week to May 29, while the market had forecast a drop of about 1.7 million barrels.

The US government’s Energy Information Administration (EIA) is due to publish its report later on Wednesday, with estimates pointing to a 2.5 million barrels fall.
However, investors remained cautious before the upcoming OPEC June 5 meeting that will shape the supply outlook for next months.

Technical Levels

WTI oil has an immediate resistance which stands at 61.56 levels above which gains could be extended to 62.50 levels. Meanwhile, support is seen at 60 levels from here losses could be extended to 58.50 levels.

WTI oil futures on the Nymex gave back previous gains and rebounded lower in the early European trades, as markets speculate US crude reserves may rise again ahead of Friday’s OPEC meeting.

(Market News Provided by FXstreet)

By FXOpen