WTI testing offers near $ 58.50 ahead of US data, EIA
- Oil struggles to extend the upside despite trade deal hopes.
- Bearish API crude inventory report continues to weigh on the prices.
- Markets await US macro news and fresh US-Sino trade updates.
WTI (oil futures on NYMEX) extends the steady rise from the Asian session lows of 58.16, although struggles to take-out the 58.50 resistance, as the bears continue to find some support from the overnight build in the US Crude Stocks, according to the latest data published by the American Petroleum Institute (API).
The industry group showed that US crude stocks rose by 3.6 million barrels in the week to Nov. 22 to 449.6 million, compared with expectations for a decrease of 418,000 barrels, as cited by Reuters.
Further, a modest pick-up in the US Treasury yields is propping up the US dollar higher against its main competitors, which in turn seems to be capping the upside attempts in the black gold. A stronger greenback usually makes the USD-denominated oil more expensive for foreign buyers.
However, the oil bulls are kept alive amid ongoing US-China trade deal optimism that underpins the broader market sentiment. European stocks are posting mild gains while S&P 500 futures have also turned northwards.
Attention now turns towards a fresh batch of US economic data for fresh dollar trades. The US Energy Information Administration’s (EIA) official Crude Stocks data, due at 1530 GMT, will also offer a fresh trading impulse while the main market mover is likely to be the trade developments.
WTI Levels to watch