WTI extends rally beyond $ 58

FXStreet (Mumbai) – WTI oil futures on the Nymex extends its rebound from the US last session following a fourth straight week of decline in US stockpiles, however, the black gold heads for a weekly drop.

WTI recovers from five week lows

Currently, WTI trades 0.98% higher at 58.25, supported above $ 58. Oil prices extended its overnight gains boosted by EIA report which showed that US crude inventories declined for a fourth straight week, easing worries over the supply glut.

The latest data on US crude inventories cheered traders on Thursday after it reflected that US inventories fell by 2.8 million barrels to 479.36 million barrels in the week to May 22, more than a 1.2 million decline expected by the market.

Meanwhile, the US dollar index trades flat today at 97.09 pushing dollar-priced commodities higher as it makes them cheaper for traders holding other currencies.

Markets now await Oilfield services company Baker Hughes’ weekly report on US rig counts and US GDP number for further momentum on oil prices.

Technical Levels

WTI oil has an immediate resistance which stands at 59 levels above which gains could be extended to 61 levels. Meanwhile, support is seen at 57 levels from here losses could be extended to 55.0 levels.

WTI oil futures on the Nymex extends its rebound from the US last session following a fourth straight week of decline in US stockpiles, however, the black gold heads for a weekly drop.

(Market News Provided by FXstreet)