WTI in a wait-and-see mode ahead of OPEC, non-OPEC cuts

Oil futures on NYMEX trade little changed so far this Tuesday, extending its cautious stance for the fourth straight session, as investors now gear up for the OPEC, non-OPEC cuts to kick-in next month.

Oil: Weekly supply reports eyed

Currently WTI trades modestly flat just ahead of $ 53 mark, retreating from session tops of $ 53.24. Oil steadies in early Europe, as markets turn into a wait-and-see mode just a week before the implementation of the first output cut deal agreed between OPEC and non-OPEC producers since 2001.

However, the bulls remain underpinned amid reports of a drop in the Chinese oil stockpiles and a boost in the bullish bets on US crude oil, as cited by the US CFTC data.

Data from the official Xinhua news agency showed that the Chinese Nov crude oil stocks fell 1.55% from the previous month to 29.89 million tonnes as domestic output shrank and winter demand grew.

Amid a holiday-thinned week ahead, oil markets will eagerly look forward to the US weekly supply report from the API and EIA.

WTI technical levels

A break above $ 53.24 (daily high) could yield a test of weekly high of 53.79. While a breach of support at $52.26 (Dec 23 low) would expose the Dec 19 low of $51.51.