WTI depressed near $ 49 mark ahead of US drilling report

Oil futures on NYMEX corrected lower on Friday, although remain in close proximity of eight-week tops of $ 49.23, as investors brace for the upcoming US drilling activity report.

WTI headed towards 200-DMA at $ 49.91

The bulls faced exhaustion in the Asian trades, now prompting the black gold to extend the phase of consolidation in Europe.

The sentiment around oil prices remain buoyed amid the latest reports of declining US crude stockpiles and slowing US shale output.

Analysts at ANZ noted: "Crude oil prices rose further as the focus remained on fundamentals. This week's better-than-expected inventory drawdown in the United States continued to support prices."

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.

Later today, oil traders closely await the US rigs count data to gauge the US supply side scenario and its impact on oil prices going forward. At the time of writing, WTI trades -0.10% higher at $ 48.99 while Brent trades modestly flat at $ 51.43.

WTI technical levels 

The resistances are aligned at $ 49.23 (8-week tops), $ 49.90 (200-DMA), $ 50.29 (May 29 high), while supports are located at $ 48.22 (5-DMA), $ 47.79 (100-DMA), $ 47.29 (10-DMA).