WTI drops over 1% on rising OPEC output, API report eyed

Having bottomed out near $ 46.30 levels last hour, oil futures on NYMEX attempts a minor-recovery in the European session. However, the sentiment remains dampened by yet another jump report in the OPEC oil output levels. OPEC exported 25.92 million barrels per day (bpd) in June, 450,000 bpd above May and 1.9 million bpd more than a year earlier.

The stalled selling in black gold can be attributed to the reports of mounting tensions around the Korean peninsula, after North Korea launched an ICBM yesterday. However, the recovery looks short-lived, as investors turn nervousness ahead of the weekly US crude stockpiles report due to be published by the API later today.  

Further, resurgent USD demand across the board amid a recovery in risk sentiment and ahead of the FOMC minutes release, also keeps the downside in play in the USD-sensitive commodity. At the time of writing, WTI drops -1.30% to $ 46.44, while Brent also slides -1.25% to 48.98 levels.

WTI technical levels 

Higher side: $ 46.80 (key resistance), $ 47 (zero figure), $ 47.75 (May 4 high)

Lower side: $ 45.50 (psychological levels), $ 44.88 (Jun 30 low), 43.67 (Jun 28 low)