WTI takes on the recovery above $ 46 mark as Harvey weakens

Oil futures on NYMEX is on a steady recovery path so far this Thursday, having paused a three-day sell-off, triggered by the Harvey storm led reduced crude demand from the US refineries.

Reuters reported yesterday that nearly a fifth of the US refineries were closed down on the back of flooding and storm damage.

The black gold now looks to stabilize in the European session, after yesterday’s sell-off, as the US EIA bullish crude inventory report continues to underpin the sentiment around the oil markets.

The EIA said Wednesday that the US crude supplies declined by 5.4 million barrels for the week ended Aug. 25, extending the drawdown continuation pattern into the ninth straight week.

Meanwhile, oil also derives support from the latest reports that suggested the Harvey hurricane has weakened to a tropical depression, providing the scope for the refineries to re-open sooner than previously expected.

At the time of writing, WTI trades +0.33% higher at $46.09, while Brent also rises +0.30% to $ 50.87.

WTI technical levels 

Higher side: $ 46.50/52 (psychological levels/ 5-DMA), $ 47.13/19 (10 & 100-DMA), $ 47.67 (20-DMA)

Lower side: $ 45.59 (5-week lows), $ 44.90 (classic S2/ Fib S3), $ 44.51 (Jul 5 low)