WTI oil price stands at the back foot on Thursday but holding above $52.00 handle for now, after falling on Wednesday on unexpected build of US crude stocks.
EIA report on Wednesday showed crude inventories rose for the first time in five weeks. Build of 0.85 million barrels last week disappointed expectations for a draw of 2.5 million barrels, send oil prices lower.
Fresh easing is still seen as consolidation ahead of final push towards key barrier at $52.84 as overall structure remains bullish and influenced by recent comments from Saudi Arabia’s oil minister about extending output reduction plan in order to end global oversupply.
Near-term price action remains supported by rising 10SMA ($51.96) and bull-trendline off $49.12 trough ($51.67) which maintain bullish bias.
Break here would sideline bulls for deeper correction which is indicated by overbought slow stochastic on daily chart.
Break lower would open next pivotal support at $51.26/20 (Fibo 38.2% of $49.12/$$52.59 / 20SMA).
Res: 52.59, 52.84, 53.73, 54.27
Sup: 51.96, 51.67, 51.20, 50.86
