Oil recovers from 2-month lows ahead of API data

Oil prices recovered from 2-month lows on Tuesday, as investors await US inventories reports. West Texas Intermediate crude oil rose to $2.04, or 4.6%, to settle at $46.80 a barrel on Nymex.

The commodity advanced also on bargain hunting, as the 45.00 region seems to have become the lower end of oil's comfort zone.

WTI technical view

“Technically, the daily chart shows that the price recovered well above its 100 DMA, but that the 20 DMA keeps heading lower around 47.80, whilst the technical indicators have recovered their bullish slopes, but remain within negative territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is now well above its 20 SMA, whilst the technical indicators have partially lost upward strength, but remain within positive territory, suggesting the commodity may recover further after a brief period of consolidation.”

Support levels: 45.70 45.00 44.40. Resistance levels: 47.10 47.80 48.50.