WTI sticks to gains above $ 52 mark, EIA data in focus

Having witnessed a volatile session on Tuesday, WTI (US oil futures on NYMEX) look to stabilize so far this Wednesday, as investors await the US EIA crude supplies report for fresh incentives.

The bullish API crude inventory report combined with looming concerns that tensions in the Middle East could disrupt supplies, continue to remain supportive of oil prices.

On Tuesday, the black gold abruptly lost a dollar on the headlines from Iraqi oil ministry, citing that all oil facilities in Kirkuk province were brought under government control and production restarted at the oil facilities.

However, oil prices quickly changed its course and staged a V-shape reversal on the release of the API crude inventory report, which showed that the US crude stockpiles fell by 7.1 million barrels in the week to Oct. 13 to 461.4 million barrels.

Later today, the official US fuel inventory data will be published by the Energy Information Administration (EIA), which will shed fresh light on the US supply-side scenario. At the time of writing, WTI advances +0.40% to $ 52.09, while Brent rises +0.85% to $ 58.38.

WTI Technical Levels

Higher-side levels: 52.43 (Sept 26 high), $53.21 (Apr 16 high), $ 54 (round number)

Lower-side levels: 51.83 (daily pivot), 51.50 (psychological levels), 51.05 (20-DMA)