WTI pauses 2-day sell-off, re-attempts $ 46

Oil futures on NYMEX are seen making a minor comeback in the European session, looking to regain $ 46 mark, despite lingering supply glut concerns.

WTI eyes API inventory report

Despite stalled selling, the black gold remains on track to book third consecutive weekly decline, as oversupply worries continue to haunt markets, outweighing OPEC’s efforts to limit output levels.

Moreover, the latest EIA crude inventory data revealed a surprise 3.3-million-barrel build in commercial crude oil stocks to 513.2 million, which weighed negatively on the investors’ sentiment.

Further, reports that Libya's 270,000-bpd Sharara oilfield has reopened after a workers' protest also added to the supply glut concerns and dragged the prices to five-week troughs of $ 45.22.

Looking ahead, oil prices await the US rigs count data for next direction. At the time of writing, WTI rises +0.44% to 45.84, while Brent is up +0.42% at $ 48.10.

WTI technical levels 

A break above $ 46.18 (June 8 high) could yield a test of $ 47 (round number) beyond which $ 47.45 (10-DMA) could be tested. While a breach of $ 45.16/06 (classic S1/ Fib S2) would expose $ 44.50 (psychological levels), below which downside opens up for a test of $ 43.76 (multi-month lows).