WTI little changed near $ 46 ahead of US drilling data
Oil futures on NYMEX are seen extending its Asian consolidation box around $ 46 mark into Europe, now pushing the rate towards the key resistance located near 46.50 levels.
WTI: Will it take-out $ 46.50?
Having fluctuated between gains and losses almost throughout the Asian trades, oil prices appear to stabilize near 46 handle. However, the prices remain vulnerable amid higher inventories from the OECD members, which add to the persistent supply glut worries that plague oil markets.
Oil analysts at research and brokerage firm Sanford C. Bernstein, as cited by Reuters, noted: “For the first half of 2017, OECD inventories are likely to finish higher, rather than lower ... The most plausible explanation is that OPEC compliance has been not as high as has been suggested."
Further, the latest IEA monthly oil market report, which revealed that the OPEC output cut deal compliance stood at its lowest in six months in June, also continues to weigh on investors’ minds.
IEA: Compliance with OPEC cuts slips to 78% in June vs 95% in May
Meanwhile, the black gold also exposed to downside risks amid increased nervousness ahead of Bakers and Hughes oilfields service US rigs count data that will be reported later in the American session
Also, a fresh batch of crucial economic news out of the US, will have a significant impact on the USD-sensitive oil. At the time of writing, WTI drops -0.28% to $ 45.96, while Brent trades modestly flat around $ 48.20.
WTI technical levels
Higher side: $ 46.48 (50-DMA), $ 47.10 (Jul 3 high), $ 47.50 (psychological levels)
Lower side: $ 45.38 (5-DMA), $ 44.51 (Jul 5 low), $ 43.67 (Jun 28 low)
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