WTI: Recovery remains capped by $ 45, US rigs count in eyed

Despite a drawdown witnessed in the US crude stockpiles, oil futures on NYMEX slump more-than 1 percent in the Asian session, extending the overnight weakness and down for the third day in a row.

The bullish EIA crude inventories report, which showed that the US crude stockpiles fell by 6.3 million barrels last week to 502.9 million barrels, outweighed the latest reports of rising US crude production levels and hence, triggered a fresh sell-off in oil prices.

Further, the news of rising US oil output levels added to the persisting oversupply concerns, lately fuelled by the reports of increasing OPEC supplies.  According to Thomson Reuters Oil Research, the OPEC supplies rose for the second straight month in June.

Over the last hour, the black gold is making minor-recovery attempts amid a recovery in the Asian stocks. However, the prices continue to face stiff resistance at $ 45 barrier, keeping the recovery in check.

Next of note for the commodity remains the US drilling activity report, to be published by Bakers and Hughes oilfields services company, and NFP data llated for release in the NA session . At the time of writing, WTI drops -1.25% to $ 44.95, while Brent also slides -1.16% to 47.55 levels.

WTI technical levels 

Higher side: $ 45.56/58 (10-DMA/ daily pivot), $ 46 (zero figure), $ 46.53 (Jul 6 high)

Lower side: $ 44.67 (daily low), $ 44 (key support), 43.67 (Jun 28 low)