WTI subdued circa $57, EIA Report & FOMC eyed

FXStreet (Mumbai) - WTI oil futures on the Nymex pared previous gains and trades moderately in losses in the early European morning, as traders remain wary ahead of US crude stockpiles data and FOMC statement later in the day, while ongoing Middle East tensions continue to underpin.

WTI wavers around $57/ barrel

Currently, WTI trades modestly flat at 56.94 levels, retreating from 56.81 lows. Crude prices trades subdued as traders remain divided amid mixed cues that a bigger-than-expected hike in the US inventories may drag prices lower while persisting geopolitical tensions continue to support the prices.

Crude inventories in the US rose 4.2 million barrels to 485.4 million in the week to April 24, rising for the 16th consecutive week, the American Petroleum Institute showed in a report on Tuesday. Markets had forecast an increase of 2.3 million barrels.

While EIA report could show another huge expansion in crude stockpiles, driving them to a fresh record. For the week ending April 24, markets estimate US crude stockpiles will increase by 2.5 million barrels.

Oil Technical Levels

WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.60 levels. Meanwhile, support is seen at 55 levels from here losses could be extended to 53.50 levels.

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