WTI pauses rally ahead of US data, below $ 54

Oil futures on NYMEX are seen correcting lower in the European session, following a 2% rally seen yesterday, which drove the prices to the highest levels in three-weeks.

WTI heads towards 5-DMA at $ 53.23

Currently WTI drops -0.28% to $ 53.63, having failed to sustain a break above 54 mark. Oil bulls take a breather after the recent upsurge, as they turn cautious ahead of the US GDP and rigs count data due later in the American session.

Oil prices rallied a day before as sentiment was lifted by successful compliance of the OPEC and non-OPEC output cut deal so far. The deal aims to rebalance oil markets this year.

However, worries over rising US production capped further upside in the black gold. The US oil production has risen by around half a million barrels per day since mid-2016 to 8.96 million bpd.

WTI technical levels

A break above daily high of $ 54.06 could yield a test of $ 54.81 (daily R2). While a breach of support at $ 53 (round figure) would expose the 50-DMA support of $ 52.30.