WTI steadies below $ 53 ahead of API inventory report

Oil futures on NYMEX look to stabilize in Europe, as investors buying into renewed USD strength, while awaiting fresh weekly crude stockpiles report from the API due later in NA session.

Oil: Focus on weekly supply reports & FOMC

Currently WTI trades almost unchanged at $ 52.80, moving back and forth in a 50 cent range. Oil prices stalled its corrective slide and staged a minor-recovery in the Asian trades, however, the recovery lost steam just shy of $ 53 mark, keeping the black gold confined in a tight range below the last, as we head towards the US API crude stockpiles data release.

Oil found support from reports of a supply cut in Abu Dhabi, which fell in line with the output cut deal reached by the OPEC. While strong physical demand from Asia combined with upbeat Chinese industrial data, offered some respite to the bulls.

Looking ahead, the black gold may regain poise and resume the upside as falling Chinese crude output and reports of an expansion of China’s strategic oil reserves, will underpin the sentiment around oil.

WTI technical levels

A break above $53 (zero figure) could yield a test of previous tops around 54.50 region. On the lower side, breach of support at $52.53 (daily low) would expose the 10-DMA support of $51.74.”