WTI re-takes $ 53 ahead of US API inventory report

After having peaked at five-week tops near $ 53.25 in early Asia, oil futures on NYMEX extended its retreat into Europe and breached 53 mark, before meeting fresh buyers near 53.85 region.

The black gold eased-off multi-week tops as concerns over rising US shale output continue to haunt investors’ minds, with attention now turning towards the upcoming US crude stockpiles data due to be published by the API later today.

According to the US government data, the US crude inventories have touched record highs at both the storage hub of Cushing, Oklahoma, and in the U.S. Gulf Coast in recent weeks, Reuters reports.

Oil prices clinched fresh five-week highs earlier on the day on supply outages concerns amid reports of shutdown at Libya’s largest Sharara crude oilfield. The prices also found support as markets remain expectant to the start of the US summer driving season, which could support prices.

WTI technical levels 

A break above $ 53.23 (5-week tops) could yield a test of $ 53.50/56 (psychological levels/ March 6 high) beyond which $ 54 (zero figure) could be tested. While a breach of $ 52.02 (100-DMA) would expose the psychological support at $ 51.50, below which downside opens up for a test of $ 50.77/74 (Apr 6 & 5 low).