WTI keeps losses below $ 49 mark, EIA report in focus

Oil futures on NYMEX remain depressed, consolidating yesterday’s steep drop, fuelled by dwindling US manufacturing sector activity and bearish API crude stockpiles report released late-Tuesday.

WTI remains below $ 49

The bears remain in control and restrict any recovery attempts in oil prices below $ 49 mark, as the sentiment remains undermined by an unexpected build in the US inventories.

The American Petroleum Institute's (API) report showed that the US crude stocks rose by 1.8 million barrels in the week ending July 28 to 488.8 million, which suggested that the recent declines in the inventory levels were temporary in nature.

Moreover, the latest reports that the OPEC exports have risen in July to 26.68 million bpd, also collaborated to the weakness in the black gold. Furthermore, oil prices also came under pressure after the Economist Intelligence Unit noted, despite the cuts "the global market remains oversupplied," warning that "there is no guarantee that further cuts will be sufficient to rebalance the oversupplied global oil market."

Also, the latest headlines from Venezuela, citing that the country is preparing for plan B should the US impose more sanctions, dulled hopes for any supply disruptions and exacerbated the pain in oil.

Markets now await the official US government storage figures due to be published by the EIA later today for the next direction on oil prices. At the time of writing, WTI skids -0.65% to $ 48.84 while Brent drops -0.52% to $ 51.51.

WTI technical levels 

The resistances are aligned at $ 49.19 (daily pivot), $ 49.49 (5-DMA), and $ 50 (key psychological level) while supports are located at $ 48.52 (10-DMA), $ 47.73 (100-DMA), $ 47 (round number).