WTI extends recovery towards $ 48, API report eyed

Having found support ahead of $ 47 mark, oil futures on NYMEX attempted a tepid recovery on Tuesday, in a bid to regain $ 48 mark.

WTI awaits API report for fresh impetus

The black gold stalled its 2% sell-off and edged higher on expectations of tightening supplies from the US, with markets expecting the API weekly inventory report to show the continuation of the drawdown patterns in the US crude stockpiles.

Meanwhile, oil prices ignored resurgent USD demand across the board and cheered positive fundamentals, while renewed risk-on wave also boosted the sentiment around the risk asset - oil. A stronger US dollar makes the USD-denominated commodity expensive for holders in foreign currencies and vice-versa.

Focus now remains on the key US API stockpiles report due later today for fresh direction. At the time of writing, WTI trades +0.65% higher at $ 47.84, while Brent rises +0.75% to $ 52.05.

WTI technical levels 

Higher side: $ 48.74/89 (Aug 21 & 18 high), $ 49.52 (200-DMA), $ 50 (psychological levels)

Lower side: $ 47.96/94 (10 & 5-DMA), $ 47.25/20 (100 & 50-DMA), $ 46.46 (3-week lows)