WTI flat above $49 ahead of API stock data

Crude oil prices are having a difficult time finding direction on Tuesday with the barrel of West Texas Intermediate trading virtually unchanged at $49.30 at the moment.

Ahead of the API stock report, crude oil didn't show much reaction to the latest OPEC meeting headlines and the EIA's forecast report. Representatives from OPEC met in Abu Dhabi on Tuesday and according to the statement released after the meeting, the UAE, Iraq, Kazakhstan, and Malaysia all expressed their full support for the existing monitoring mechanism and talks were constructive and fruitful.

• OPEC: Talks on compliance in Abu Dhabi will help facilitate full conformity with supply cut deal
• EIA forecasts 2017 US crude oil production to rise by 500,000 bpd - Reuters

On the other hand, in its latest report, the EIA revised its forecast for 2017 daily oil production level in the U.S. to 500K barrels from 460K, and forecast for 2018 up to 570K barrels from 560K.

Last week, the weekly API report surprised the markets as it announced a buildup in crude oil stocks in the U.S. and pushed the barrel of WTI more than $1 lower to close below the critical $50 handle. Another increase in today's report, which is scheduled to be released at 20:30 GMT, could bring another selling wave. 

In the meantime, the US Dollar Index is preserving its data-led daily gains as it moves at 93.60, up 0.3% on the day, and making it harder for the WTI to gather a bullish momentum.

Technical outlook

$50 (psychological level) remains as the first critical resistance. A daily above that level could allow for further gains towards $51.05 and $52 (May 25 high).  On the downside, supports could be seen at $47.85 (Jul. 26 low), $46.40 (Jul. 25 low) and $45 (psychological level).