WTI stalls downside just ahead of $ 48, EIA report eyed

Oil futures on NYMEX fell further in the red zone during the Asian session this Wednesday, extending retreat from two-week tops reached earlier this week at $ 49.66.

The black gold keeps losses so far this session, in the wake of rising US crude inventories, as reflected by the US API report released late-Tuesday. The API data showed that the US crude stockpiles rose by 882,000 barrels in the week ending May 12 to 523.4 million.

Moreover, oil prices were also weighed down by the latest IEA monthly oil-market report, which showed that commercial oil inventories in industrialized countries rose by 24.1 million barrels in the first quarter of 2016, despite the cuts.

Meanwhile, the prices appear to have shrugged-off latest reports of Iran, Iraq, Saudi Arabia and Russia having shown their willingness to extend the OPEC-led oil output cut through the first quarter of 2018. Oil now awaits the official US government data on the crude reserves for fresh direction.

WTI technical levels 

A break above $ 49 (round number) could yield a test of $ 49.66 (2-week tops) beyond which $ 50 (psychological levels) could be tested. While a breach of $ 48.04 (daily low) would expose $ 47.75 (May 15 low), below which downside opens up for a test of $ 47 (zero figure).