WTI in the red below $ 53 ahead of EIA inventory report

Oil futures on NYMEX failed to sustain a minor-recovery above 53 handle and extended losses below the last, as markets remain nervousness ahead of the EIA crude stockpiles report.

WTI flirts with 5-DMA

Currently WTI drops -0.56% to $ 52.88, having posted daily low of 52.76 last hour. Oil prices remain under pressure, as rising US crude supplies continue to weigh on investors’ sentiment. The latest API data showed a build in the US crude, gasoline and diesel stocks last week.

However, losses were capped amid renewed optimism spurred by output cut announcements made by OPEC and non-OPEC producers. All eyes now remain on the official government crude reserves data due later at 1530GMT, with markets predicting an increase in crude stockpiles by about 2.8mln barrels last week.

WTI technical levels

A break above Jan 17 high of $ 53.52 could yield a test of $ 54 (zero figure). While a breach of support at $ 52 (50-DMA) would expose the psychological level of $ 51.50.