WTI correcting lower towards $ 52 ahead of EIA data

• API report shows gasoline and diesel stocks drawdown

• Saudi Arabia’s Energy Minister comments underpin
• EIA crude inventory data in focus

Having recorded fresh four-week tops just ahead of $ 52.50 levels, WTI (oil futures on NYMEX) is on a gradual retreat, as the bulls take a breather ahead of the US official government crude stockpiles data that will be released later on Wednesday.

WTI: 5-DMA support at $ 52.03 holds the key  

The black gold fell back into the red zone, reversing a part of yesterday’s 1% rally, as markets resort to profit-taking ahead of the weekly crude supplies report, while persistent strength seen around the US Treasury yields also dampen oil’s attractiveness as an alternative higher yielding asset.

However, the downside appears limited, as sentiment remains underpinned by the recent comments from the Saudi Arabian Energy Minister Al-Falih, stating that the Kingdom is committed to ending the supply glut.

Moreover, the prices also draw support from forecasts of a further drop in the US crude inventories as well as from looming tensions over the Iraqi Kurdistan.

At the time of writing, WTI drops -0.53% to $ 52.19, while Brent slips -0.36% to $ 58.12.

WTI Technical Levels

Higher-side levels: 52.56 (4-week high), $53.21 (Apr 16 high), $ 54 (round number)

Lower-side levels: 52.03 (5-DMA), 51.50 (psychological levels), 51.14 (20-DMA)