WTI consolidates the upside above $ 48, eyes on Harvey storm

Having peaked at $ 48.49 in the last US session, oil futures on NYMEX have entered a phase of bullish consolidation, as traders await a fresh impetus for the next push higher.

WTI cheers EIA data

Oil bulls continue to cheer tightening US supplies, as reflected by yet another draw down in the US crude and gasoline stockpiles, despite the US oil output rising to the highest levels since July 2015.

The EIA inventory report showed that the US Crude inventories fell by 3.3 million barrels in the week ending August 18, to 463.17 million barrels, down 13.5% from their record levels last March, as Reuters cited.

Moreover, mounting supply disruption concerns that could fuelled from the Gulf of Mexico storm. The US National Hurricane Center reported that the tropical depression Harvey strengthened into a tropical storm late-Wednesday with winds of about 65 km per hour and was located about 440 miles (705 km) southeast of Port Mansfield, Texas.

Hence, in the wake of the Gulf of Mexico storm, the bulls are seen gathering pace for further upside, as a test of $ 50 mark now looks inevitable. However, Friday’s remarks from the Fed Chair Yellen at the Jackson Hole event will be closely eyed for fresh take on the USD-sensitive oil.

At the time of writing, WTI trades modestly flat at $ 48.37, while Brent trades almost unchanged at $ 52.56

WTI technical levels 

Higher side: $ 48.74/89 (Aug 21 & 18 high), $ 49.46 (200-DMA), $ 50 (psychological levels)

Lower side: $ 47.37/23 (50 & 100-DMA), $ 46.46 (3-week lows), $ 46 (key support)