WTI supported above $ 65.50 ahead of API data

• Looks to extend gains on global stock markets recovery, Middle East tensions.
• US API crude stockpiles and output data – key focus.

WTI (oil futures on NYMEX) resumed its upward momentum on Tuesday, reversing the profit-taking slide seen a day before, as the bulls continue to derive support from the revival in risk appetite for higher-yielding assets amid the US seeking resolution with China on the trade issues.

The barrel of WTI also remains underpinned amid rising Middle East tensions, which could raise supply disruption concerns. Recall that the appointment of John Bolton as the US President Donald Trump’s national security adviser last week further strained relations between the US and various Middle Eastern states.

However, the further upside appears capped amid broad-based US dollar rebound and increased nervousness ahead of the weekly US crude inventories data due to be published by the American Petroleum Institute (API) late-Tuesday.

WTI Technicals

At $ 65.70, the resistances are aligned at $ 66 (round number), $ 66.54 (2-month tops) and $ 67.07 (classic R2/ Fib R3). On the flipside, the supports are located at $ 65 (psychological levels), $ 64.30/14 (10-DMA/ Mar 22 low) and $ 63.58 (Mar 21 low).