WTI attempts tepid-bounce, around $ 50 mark

Oil futures on NYMEX stalled 2-day declines and now attempt a tepid-bounce as traders cheer bigger-than expected drop in the US stockpiles, as confirmed by the EIA report.

Oil: Attention turns to OPEC, non-OPEC meeting

Currently WTI advances +0.60% to $ 50.07, having posted daily highs at 50.14 some minutes ago. Oil prices now trade with moderate gains, after having dropped to a week’s low in wake of concerns whether an output deal likely to be reached between OPEC and non-OPEC members on Saturday will help resolve persistent global oversupply woes.

Moreover, the recovery is also backed by bullish EIA crude inventories report, which showed that the US crude oil inventories dropped 2.4 million barrels in the week to Dec. 2. Markets had predicted a draw of 1 million barrel.

Further, a broadly weaker US dollar on the profit-taking ahead of the ECB event, also adds to the positive tone seen in oil prices. A weaker dollar makes dollar-denominated oil cheaper for foreign buyers.

WTI technical levels

A break above $50.79 (5-DMA) could yield a re-test of yesterday’s high of $51.20. On the lower side, breach of support at $50.62 (daily low) would expose the psychological support of $49.”