Oil Recovery Now Eyeing $45.00 Level Ahead of EIA Inventory Data
After dipping back below $44.00/barrel mark, WTI crude oil future recovered sharply to currently trade at the high point of the day at $44.80.
Earlier
on Wednesday, oil prices were under pressure after API on Tuesday
reported an increase in US crude stocks for last week by 3.4 million
barrels. Later on Wednesday EIA is scheduled to releases its weekly
inventories data. Of late, oil prices had remained under pressure of
renewed worries over persistent surplus. The prices, however, have found
support on disruption fears on the back of the Canadian wildfires that
have taken more than 2 million barrels a day of production out of the
market.
Extending its recovery from session through level, the
commodity is now inching closer to $45.00 psychological mark. A
sustained strength above $45.00 mark would indicate that the black gold
might not have run out of steam and is ready to resume its prior
appreciating move.
Technical levels to watch
Sustained
strength above $45.00 level, the commodity seems all set to dart
towards its recent closing high level important resistance near
$45.95-$46.00 area. A clear break through this strong resistance would
now pave way for further near-term appreciating move towards its next
major resistance near $47.65-70 area, nearing Nov. 2015 daily closing
high level.
Alternatively, failure to conquer $45.00 mark
resistance and a subsequent drop back below $44.00 round figure mark
support seems to open room for additional weakness, initially towards
weekly lows support near $43.20-43.00 area and eventually towards
March-April highs resistance turned support near $42.45-40 region.
