WTI catches fresh bids, re-takes $ 47 mark ahead of US drilling data
Oil futures on NYMEX is seen breaking its Asian consolidation box to the upside in the European session, and remains on track to book the second straight weekly gain.
WTI eyes on US drilling report
The black gold is regaining lost ground and looks to test six-week tops of $ 47.73 amid choppy trading, as investors gear up for the key OPEC meeting due on Monday, July 24th.
The rally in oil prices this week gained extra traction after the US EIA crude inventories report showed a strong drawdown in crude stockpiles, while rising Chinese refinery demand also underpinned the bullish momentum around the commodity.
Oil prices, however, could struggle to extend the upside amid profit-booking and persistent oversupply worries, as attention now turns towards the US rigs count data and Monday’s OPEC and non-OPEC meeting scheduled in Russia. At the time of writing, WTI trades 0.23% higher at $ 47.03, while Brent rises +0.34% to $ 49.45.
WTI technical levels
Higher side: $ 47.73 (6-week high), $ $ 47.90/ 48 (100-DMA/ round number), $ 48.42 (June highs)
Lower side: $ 46.71 (5-DMA), $ 46.33/01 (10 & 50-DMA), $ 45.81 (Jul 18 low)