Crude prices in the US trade at USD 50.60/barrel, after having bounced-off from the 10-DMA located at 47.57 levels earlier today.
Concerns of excess supply linger
The Energy information Agency data released yesterday showed the crude oil inventories in the US rose by 6.3 million barrels last week to 413.1 million, the most in records dating back to August 1982. Moreover, the data brought back the concerns of supply glut to the center stage.
However, prices saw another relief rally today on hopes that falling rig count in the US would help reduce excess supply to some extent. Prices now trade above the hourly 50-SMA located at USD 50.38 and are fast approaching the 50-DMA located at USD 51.16.
WTI Crude Technical Levels
The immediate resistance is seen at 51.16, above which gains could be extended to 52.53 levels. Meanwhile, support is seen at 49.81 (5-DMA) and 49.52 levels.
Concerns of excess supply linger
The Energy information Agency data released yesterday showed the crude oil inventories in the US rose by 6.3 million barrels last week to 413.1 million, the most in records dating back to August 1982. Moreover, the data brought back the concerns of supply glut to the center stage.
However, prices saw another relief rally today on hopes that falling rig count in the US would help reduce excess supply to some extent. Prices now trade above the hourly 50-SMA located at USD 50.38 and are fast approaching the 50-DMA located at USD 51.16.
WTI Crude Technical Levels
The immediate resistance is seen at 51.16, above which gains could be extended to 52.53 levels. Meanwhile, support is seen at 49.81 (5-DMA) and 49.52 levels.
