WTI bounces-back above $ 50.50, API report in focus

Oil futures on NYMEX broke its overnight range-trade to the upside and now makes another attempt to regain $ 51 mark, as sentiment remains underpinned amid decreasing production levels in Saudi Arabia and Iraq.

Iraqi Oil Minister Luaibi said earlier today that the country’s current output levels stand at 4.32m bpd, slightly lower from that seen in May and June, while on Monday, the JODI reported that Saudi‘s oil output dropped to 10.013 million bpd in July, when compared to 10.070 million bpd seen in June.

However, traders continue to remain wary, after the latest US EIA report showed on Monday that US shale production is set to rise for a tenth month in a row in October. Moreover, increased nervousness ahead of the weekly US crude stockpiles report due to be published by the API later today, could keep the gains in check.

At the time of writing, WTI trades +0.42% higher at $ 50.56, while Brent steadies at $ 55.65 levels.

WTI technical levels 

To the topside, resistances are aligned at $ 51.00 (round number), followed by $ 52 (week ended May 20 high) and $ 52.50 (psychological levels). Supports are located at $ 50.18 (5-DMA), 49.17/48.98 (10 & 200-DMA) and 48.45/36 (50 & 20-DMA).