Oil of Day’s Low to $48.00 Mark, Eyeing API Inventory Data
WTI crude oil
prices remained suppressed for the third consecutive session, weighed
down by a stronger US Dollar and as concerns of global supply glut
At the time of writing, the commodity was hovering around $48.00/barrel mark, off day's through level of $47.63 as traders turn their focus to API's preliminary release of weekly US crude oil inventories data, later during NY session.
In last few trading session, receding worries of supply disruption from Canada and Africa has resurfaced concerned of global oversupply. However, the ongoing strike by French oil workers might continue to dent global supply and support prices from falling further.
Meanwhile, the ongoing strength for the US Dollar on rising expectations of a June Fed rate-hike has also been weighting on the black gold. Oil traders now look forward to the next OPEC meeting in Vienna on June 2 for further development towards reaching an agreement on oil output freeze.
Technical levels to watch
On a sustained move back above $48.00 handle, the commodity might aim back towards recent daily closing highs resistance near $48.70-75 region, which if conquered now seems to pave way for extension of the near-term upward trajectory towards the very important $50.00 psychological mark resistance.
On the flip side, $47.20-$47.00 mark remains immediate strong support to watch for, which if broken might trigger a near-term corrective move for the commodity immediately towards $46.00/barrel mark and eventually below $45.00 mark, to $44.60-50 zone.