WTI faces rejection near $ 52.50 ahead of EIA data

• Risk-off action on European equities drags oil lower.
• Will it retest 52.50 ahead of the EIA crude stockpiles data?

WTI (oil futures on NYMEX) stalled its two-day rebound near 52.50 levels and reversed sharply in the European session, as risk-off returned to the markets amid fresh signs of economic slowdown in Asia, US and Europe.

The black gold corrects the 3% rally seen a day before that was triggered by the increased expectations that OPEC-led supply cuts could outweigh global economic slowdown concerns.

However, the downside appears cushioned amid Chinese stimulus plans and a broadly US dollar weakness, as the focus now shifts towards the official US government crude inventories data due to be reported by the Energy Information Administration (EIA) later today at 1530 GMT.

WTI Technical Levels