WTI weaker below $48.00 mark, focus on EIA report

WTI crude oil remained under some selling pressure on Wednesday and was seen hovering around four-month lows touched in the previous session.

Currently trading below $48.00/barrel mark, investors continued to dump the commodity amid renewed concerns over rising US stockpiles, which continues to underscore OPEC's effort to rebalance the oil market. 

According to the API report, released on Tuesday, US commercial crude inventories likely rose by 4.5 million barrels in the week ended March 17. Market participants now wait for confirmation from the official data by the Energy Information Administration (EIA), due later during the NA session. 

U.S. crude oil stocks rise 4.5 mln bbls - API - RTRS

A further rise in the US oil inventories would mark 10th consecutive weekly growth and continue dragging oil prices lower, even from current levels representing the lowest level since late November.

Meanwhile, a mild US Dollar recovery was also seen weighing on dollar-denominated commodities – like oil, and collaborated to the weaker sentiment. 

Technical levels to watch

Weakness below $47.75-70 area might continue to find support near $47.25-20 region, below which the commodity is likely to head towards testing $46.80 support area ahead of $46.00 round figure mark.

On the upside, any recovery attempts might now confront immediate strong resistance near $48.45-50 region, which if cleared might trigger a short-covering rally towards the $49.00 handle before the commodity darts towards $49.60 strong hurdle.