FXStreet (Mumbai) – WTI oil on NYMEX reversed early losses and extends its recovery from fresh two-week lows as oil traders unwind their positions ahead of the closely eyed EIA crude stockpiles report.
WTI back above $ 44
Currently, WTI trades nearly 0.60% higher at 44.41, retreating from 44.95 levels. US oil flipped to the green zone as traders booked profits after the recent weakness, heading into the New York session with US inventory report on the cards.
However, the upside remains capped as traders remain cautious due to weak price forecasts and also on the back of a rising US dollar against its major peers. The US dollar index now trades 0.12% higher at 96.07.
Oil prices slumped on Wednesday after the Energy Information Administration(EIA) lowered on Wednesday its crude oil price forecasts for this and next year, hurting the sentiment on the commodity market.
The agency now expects WTI to average $49.23 per barrel this year, and $53.57 per barrel for next year, lower than previous estimates of $49.62 per barrel and $54.42 per barrel, respectively.
Meanwhile, markets digest the latest American Petroleum Institute’s (API) data on Wednesday that showed crude inventories in the US climbed by 2.1 million barrels in the week to September 4.
Later today, the weekly inventory report by the EIA, considered by traders as more important, is due with market betting on an increase of 1.2 million barrels.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45 levels above which gains could be extended to 45.90 levels. Meanwhile, support is seen 41.78 levels from here losses could be extended to 40 levels.
(Market News Provided by FXstreet)