WTI defends minor bids sub-$47 mark ahead of API report

Oil futures on NYMEX attempted a minor bounce from five-week lows, although ran into fresh offers just shy of $ 47 mark post-European open, now consolidating the recovery near $ 46.70.  

The black gold is seen stabilizing in today’s trading so far, as renewed concerns over supply disruptions in Colombia and Libya kept the sentiment around oil somewhat buoyed.

Reuters quoted a refiner source, citing that the 120,000 bpd Zawiya oil refinery in Libya was working at only half its capacity due to the shutdown at the Sharara oilfield. Meanwhile, a bomb attack by leftist ELN rebel group has halted pumping operations along the Colombian second-largest oil pipeline.

Moreover, the latest reports showing that Vietnam’s crude oil output fell by 5% this month, also aided the recovery in oil prices. Furthermore, the USD-sensitive commodity also benefits from persisting broad based US dollar sell-off.

However, further upside lacks follow-through amid US refineries shutdown, in the wake of Harvey hurricane, which dampens the demand for crude.

All eyes now remain on the US weekly crude supplies report due today from the API for fresh trading impetus. At the time of writing, WTI trades +0.20% higher at $ $46.67, while Brent trades modestly flat near $ 51.35.

WTI technical levels 

Higher side: $ 47.71/48 (10-DMA/ round number), $ 48.74/89 (Aug 21 & 18 high), $ 49.34 (200-DMA).

Lower side: $ 46.16 (5-week lows), $ 45.50 (psychological levels), $ 45.29 (classic S2/ Fib S3)