WTI recovers after EIA-induced decline

Following the EIA report, the West Texas Intermediate dropped to $47.08, lowest since the late November, but was able to recover back above $48. At the moment the barrel of WTI is losing 0.35% at $48.07.

Crude inventories rose 5 million barrels in the week to March 17, the Energy Information Administration reported on Wednesday. Furthermore, the report showed that the U.S. production rose to 9.13 million bpd. However, as the maintenance season came to an end as refinery utilization rates increased 2.3% to 87.4% of the total capacity, the initial slide was limited.

"This is evidence that refinery maintenance is wrapping up for this season," said David Thompson, executive vice-president at Powerhouse, an energy commodities broker in Washington. "Expect to see increases on balance over the next six to eight weeks.", Reuters reported.

GS: OPEC now an inventory manager rather than price setter - CNBC

Yesterday, the API’s weekly report also showed an increase in  US crude stockpiles, and now markets have turned their attention to Friday's Baker Hughes data, which has been recording a sustainable increase in the total number of active rigs drilling for oil for nine straight weeks.

Technical levels

Below $47.08 (daily low) next technical supports are aligned at $45.88 (Nov. 25 low) and $45 (psychological level). On the upside, the first resistance is located at $49 (psychological level) followed by $49.60 (Mar. 16 high) and $50 (psychological level).