Oil clings to gains above $53.00 mark ahead of API report

After spending majority of the European trading session around $53.00 handle, WTI crude oil gained fresh traction and has now jumped to session peak ahead of API report on weekly oil inventories in the US.

Currently trading around mid-$53.00s, the black gold remained unaffected from resurgent greenback buying interest, which tends to dent demand for dollar-denominated commodities, on receding fears of global supply glut. The commodity is now trading comfortably above 2016 daily closing highs resistance and hence, could dart back towards retesting the highest level since July 2015, touched in the optimism led by production cut agreement between OPEC and non-OPEC producers. 

Later during the day, the American Petroleum Institute (API) will publish its report on weekly US crude stockpiles ahead of the official data from the US Energy Information Administration (EIA) on Wednesday.

Technical levels to watch

From current levels, momentum above $53.50 level might confront resistance near $54.00 round figure mark above which a fresh bout of short-covering should lift the commodity back towards 17-month high resistance near $54.50 region. On the downside, sustained weakness below $53.00 handle, leading to a subsequent break below $52.85-80 support, is likely to accelerate the slide towards $52.00 handle, with some intermediate support near $52.40 level.