WTI rebounds nearly 1%, rises to USD 51

FXStreet (Mumbai) - WTI oil futures on the Nymex recovered partial losses in the European morning, after more than 6% plunge seen yesterday after US crude stocks jumped to more than expected, posing the largest weekly gain in 14 years.

WTI bounces-off record inventories led slump

Currently, WTI trades nearly 1% higher at 51, pulling away from fresh two day lows reached yesterday at 50.37 levels. Crude prices plunged sharply back on USD 50 barrier as a larger-than-expected increase of US oil inventories dented investors’ sentiments.

US oil stockpiles rose 10.95 million barrels in the week to April 3, the largest weekly gain since March 23, 2001, the Energy Information Administration (EIA) reported on Wednesday. That compares to the much smaller increase of only 3.3 million barrels expected.

The total reservoir in the US amounted to a record 482.4 million barrels and has grown constantly over the past 13 weeks. Moreover, oil output grew 18,000 barrels to 9.4 million barrels per day (bpd), against expectations of a decrease.

Crude Oil Technical Levels

WTI oil has an immediate resistance which stands at 52.24 levels above which gains could be extended to 54 levels. Meanwhile, support is seen at 50 levels from here losses could be extended to 48.73 levels.

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