WTI recovers from 2-month lows

FXStreet (Mumbai) - WTI oil futures on the Nymex bounced-back in the European morning, after falling to fresh two-month lows in the previous session on record high US crude inventories, while a strong greenback continued to weigh on prices.

WTI eye USD 49/barrel

Currently, WTI trades 0.67% higher at USD 48.50/ barrel, rebounding from fresh two month lows at 47.35 reached in the previous session. Crude prices rebounds in a bout of a short-covering rally as traders took profits on their short positions after the recent sell-off in crude on record high stock levels. Also, a weaker US dollar across the board also supports the recovery in crude prices.

Crude plunged to fresh two month lows in the last North American session after the Energy Information Administration (EIA) said that US oil stockpiles rose by 4.51 million barrels for the week ended March 6, below the survey of 4.75 million barrels. The latest build brought total stockpiles of US crude to 448.9 million barrels, the highest level on record.

Crude Oil Technical Levels

WTI oil has an immediate resistance which stands at 50 levels above which gains could be extended to 51.22 levels. Meanwhile, support is seen at 47.35 levels from here losses could be extended to 46.50 levels.