WTI consolidates above $50 ahead of API

Crude oil prices are struggling to find direction on Tuesday ahead of the weekly API inventory report. As of writing, the barrel of West Texas Intermediate was trading at $50.40, losing 0.15% on the day.

Earlier in the day, the WTI came under a modest selling pressure after the Russian energy minister Alexander Novak argued that there wasn't an immediate need to talk about an extension to the output-cut agreement. Moreover, Iraqi oil minister Jabbar al-Luaibi crossed the wires stating that Iraq was planning to start rehabilitating Nineveh oil fields.

• Russia's Novak: No immediate need to talk about additional output cuts

However, later in the NA session, OPEC Secretary-General Mohammad Barkindo said that the compliance with the oil output cut deal between OPEC and non-OPEC nations is extremely high, limiting crude oil's losses. 

Later in the session, the American Petroleum Institute (API) will release its estimates of crude and refined product inventories ahead of Wednesday's official stock report released by the Energy Information Administration.

Technical outlook

The barrel of WTI could encounter the immediate support at $50 (psychological level) followed by $49.30 (Sep. 19 low) and $28.10 (Sep. 13 low). On the upside, resistances align at $51 (psychological level), $51.70 (Oct. 2 low) and $52.85 (Sep. 28 high). 

• The oil rally is 'for real' and should continue into year-end - Citi