WTI consolidates the downside above $ 52.50, API eyed
Oil futures on NYMEX has entered a phase of consolidation in Europe, after having fresh five-day lows at $ 52.52 in early Asia.
Oil remains depressed amid expectations of a build expected in the weekly stockpiles report due to be published by the API later in the American morning. The US API crude stockpiles data released last Tuesday, showed that the US crude inventories fell by 1.3 million barrels in the week to April 7 to 532.4 million.
Moreover, impending supply glut concerns in the wake of rising US shale output also weighs down on the sentiment around the black gold. The US shale production in May is likely to post the biggest monthly gain in more than two years, government data showed on Monday.
Meanwhile, investors turn cautious ahead of the upcoming OPEC meeting in Vienna scheduled on April 25th, with OPEC output cut deal extension likely to be the main topic on the agenda.
WTI technical levels
A break above $ 53 (round figure) could yield a test $ 53.76 (5-week tops) beyond which $ 54.44 (Mar 1 high) could be tested. While a breach of $ 52.29 (Apr 10 low) would expose the 52.05 (100-DMA), below which downside opens up for a psychological support at $ 51.50.