WTI: Bulls struggle to take-out $ 53 ahead of API data

• US-China trade optimism, US sanctions and OPEC cuts buoy the prices.
• Focus shifts to API crude stockpiles for near-term trading opportunities.

WTI (oil futures on NYMEX) is seen consolidating the overnight recovery in Europe, having failed several attempts to take-out the stiff resistance near the 53 handle, as the focus now turns towards the US API weekly crude stocks data for fresh direction.

Following a negative start to the week, the black gold staged a solid comeback, as the bulls were rescued by the renewed optimism over the US-China trade deal after the US President Trump said that “We are going to make great deals on trade”.

More so, the sentiment around the commodity remains underpinned by the increased expectations of tightening supplies, with the OPEC output cuts underway and the US sanctions on Venezuela and Iran biting into the global supply-side scenario.

However, the bulls appear to lack follow-through, as the US dollar holds firmer across the board amid looming US-China trade talks and higher Treasury yields. A stronger US dollar makes the USD-denominated oil more expensive for the buyers in foreign currency and vice-versa.

WTI Technical Levels