WTI remains supported above $ 46 ahead of API report

Oil futures on NYMEX are seen consolidating the Asian recovery, with the bulls managing to keep the 46 handle heading into the US crude inventories data due later in the NA session.

WTI awaits API inventory report

Oil prices are seen gathering pace further upside, having derived support from recent reports that Saudi Arabia said it would make significant export cuts in July.

Moreover, expectations of a drawdown in the US crude inventories, which will be reported by the API later today, also provides a helping hand to the recovery seen in the black gold from below $ 46 mark.

However, further upside appears to lack follow-through, market continue to remain wary over rising US drilling activity, which has pushed the US oil output by more-than 10% since mid-2016, Reuters reports.

Moreover, increased cautiousness ahead of the FOMC policy decision also keeps the traders on the side-lines. At the time of writing, WTI rises +0.44% to $ 46.30, while Brent is up +0.39% at $ 48.52.

WTI technical levelsĀ 

A break above $ 46.71 (June 12 high) could yield a test of $ 47 (round number) beyond which $ 47.45 (10-DMA) could be tested. While a breach of $ 45.27/20 (June 9 & 8 low) would expose $ 44.50 (psychological levels), below which downside opens up for a test of $ 43.76 (multi-month lows).

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