WTI rises to test $ 50 mark, fresh 2-month tops

Oil futures on NYMEX is seen flirting with two-month tops reached at $ 50.02 earlier on the day, as the sentiment remains underpinned by Venezuelan sanctions talks and tightening US crude supplies.

WTI: Will the buyers sustain above 50 handle

The bulls are seen gathering pace and await fresh impetus for the next push higher, as the latest reports of the US considering oil-related sanctions against Venezuela keep the scope for further upside in play.  

Moreover, with the US inventories showing drawdowns and drilling activity slowing, the black gold continues to retain the bullish momentum. Drilling for new US production is also slowing, with just 10 rigs added in July, the fewest since May 2016, Reuters reported.

Focus now shifts towards the US weekly crude inventory reports due later this week for fresh cues on the prices. At the time of writing, WTI trades +0.46% higher at $ 49.94 while Brent rises +0.36% to $ 52.43.

WTI technical levels 

The resistances are aligned at $ 49.90 (200-DMA), $ 50.29 (May 29 high), and $ 50.50 (psychological levels) while supports are located at $ 49.48 (5-DMA), $ 49 (round figure), $ 47.79 (100-DMA).