Oil inching closer to 17-month highs, EIA data in focus

WTI crude oil built on to its momentum back above $53.00/barrel mark and jumped closer to 17-month highs touched last week, albeit has retreated from session peak level 

Currently trading around mid-$53.00s, Tuesday's bullish data, API report showing a drawdown of 4.1 million barrel in US crude inventories, supported the black gold's bullish momentum for the fourth consecutive session. Further upside, however, was hindered by resurgent US Dollar buying interest, which tends to weigh on dollar-denominated commodities - like oil.

Later during NY session, investors will look forward to the official data from the US Energy Information Administration (EIA), which is expected to show a further drawdown by 2.515 million barrels for the week ended December 16. 

Technical levels to watch

A follow through buying interest has the potential to continue boosting the commodity further towards $54.00 round figure mark above which a fresh bout of short-covering should lift it further towards 17-month high resistance near $54.50 region. On the downside, $53.00 round figure mark now seems to protect immediate downside, which if broken is likely to accelerate the slide towards $52.00 handle, with some intermediate support near $52.40 level.