WTI extends losses ahead of EIA inventory data, Fed

Oil futures on NYMEX drop for the first time in four days this Wednesday, as sentiment got hit by bearish API crude stockpiles report, while pre-Fed nervousness also kept traders on the back foot.

Oil awaits EIA report

Currently WTI drops -1.13% to $ 52.37, meandering near session lows struck at 52.23. Oil prices extend its downside consolidation phase, as investors refrain from creating any big bets on the commodity ahead of much-awaited US interest rates decision, which will have a significant impact on USD denominated black gold.

Meanwhile, the latest bearish API inventory report continues to weigh down on oil prices. The US crude stocks showed an unexpected increase of 4.7 million barrels, the API data revealed. Next of note for oil remains the official government crude reserves data due to be published by the EIA later on the day.

WTI technical levels

A break above $53 (zero figure) could yield a test of previous tops around 53.40 region. On the lower side, breach of support at $52 (round figure) would expose the daily S3 of $51.35.”

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