WTI taps on $ 58, strongest since July 2015

• Concerns over Canada’s pipeline disruption to the US support.
• USD weakness further underpins.
• Eyes on US EIA inventory report.

WTI (oil futures on NYMEX) extended its upbeat momentum into a second straight session on Wednesday, rallying hard to fresh multi-month highs on the back of drawdown in US crude stockpiles and supply disruption concerns.

WTI: Will it take-out 58 handle?

The black gold has entered a phase of upside consolidation, as the sentiment remains underpinned by a fall seen in the US crude inventories by 6.4 billion barrels in the week to Nov. 17, as revealed by the API report released late-Tuesday.

Moreover, oil prices also derived support from the latest reports of a cut in the Canadian oil deliveries to the US amid a pipeline shutdown that links Alberta’s oil sands to the US refineries, after a 5,000-barrel spill in South Dakota.

However, further upside appears to lack follow-through, as the bulls take a breather before the release of the official US government crude stockpiled data due later in the NA session.

At the time of writing, WTI jumps +1.60 to $ 57.73, while Brent rises +0.42% to $ 62.66.

WTI Technical Levels

Higher-side levels: $ 58 (round figure), $ 58.28 (classic daily R3), $ 58.50 (psychological levels)

Lower-side levels: $ 56.87/82 (daily pivot/ 5-DMA), 56.39/19 (10 & 20-DMA), 56 (zero figure)