WTI keeps losses near $ 50 mark ahead of EIA report

Having hit fresh ten-day lows just below $ 50 mark, WTI (US oil futures on NYMEX) regained the last and entered a phase of bearish consolidation, as the bears await the EIA crude inventory report for the next push lower.

The black gold extended the downward spiral this Wednesday, as markets continue to take profits off the table amid strong belief that the third-quarter has been excessive. Also, the commodity remains under pressure on bearish API report, which showed a bigger-than expected build seen in gasoline stocks. Meanwhile, oil traders ignored a drop of 4.1mln barrels in crude stockpiles.  

Ahead of the official US government fuel inventory data published by the EIA, markets digest the latest headlines from the Russian Energy Minister Novak, citing a reduction in the country’s output levels last month.

At the time of writing, WTI trades -0.65% lower at $ 50.09, while Brent drops -0.80% to $ 55.55 levels.

WTI technical levels 

Jeffrey Halley at OANDA ASIA-PACIFIC noted: “WTI spot has nearby support at 49.60 followed by a series of daily lows and the 200-day moving average at 49.25. A break of 49.25 implies a much deeper correction is on the cards to the 100-day moving average at 47.60. Resistance is at 50.50 initially followed by the 51.40 regions, a daily double top and the former trend line support that WTI broke on Monday.”