WTI regains poise, refreshes eight-week highs near $ 49

Oil futures on NYMEX hovered near eight-week tops, as the dust settled over bullish EIA data and Fed outcome.

WTI on a steady rise towards 200-DMA at $ 49.91

The bulls appear to take a breather so far this Thursday, allowing a minor consolidation phase in oil, after the black gold rallied to two-month highs of $ 48.94 on a bigger-than expected drop in the US crude supplies. Markets cheered the upbeat data release, which sparked hopes that the oil supply glut will soon ease now.

The EIA report showed that the US crude inventories declined by 7.2 million-barrel in the week ended July 21, well above the 2.6 million barrels drop estimated. Also, a drawdown in gasoline stocks added to the renewed optimism.

However, it remains to be seen if the spot can sustain at higher levels amid a recovery staged by the US dollar across the board after the less hawkish Fed decision induced sell-off. Also, renewed concerns that the recent gains in oil prices could help boost output levels, could cap further upside.

At the time of writing, WTI trades 0.18% higher at $ 48.84 while Brent trades modestly flat at $ 51.05.

WTI technical levels 

Yann Quelenn at Swissquote Bank SA explains, “Crude Oil is trading higher Hourly support is given at 45.40 (24/07/2017 low). Strong resistance given at 50.28 (29/05/2017). Expected to show further bearish consolidation before another leg higher.”