WTI oil price remains steady and extends rally from $46.99 (11 Sep low) into third straight day, approaching round-figure barrier at $49.00.
Oil prices received support from OPEC monthly oil report which showed OPEC output fell by 79.000 barrels in August which offset negative impact from API crude stocks report which showed build of crude inventories by 6.1 million barrels last week (well above forecasted build of 2.5 million barrels).
This was the second consecutive build of crude stocks after Hurricane Harvey shut most of refining plants in Texas and reduced demand for the crude oil.
Today’s focus is on EIA weekly crude stocks report, due at 14:30 GMT. Forecast for the week ending Sep 8 is for build of crude inventories by 3.2 million barrels, which stands well below last week’s 4.5 million barrels build.
Bullish technical studies on daily chart are supportive for further advance, as yesterday’s break and close above daily cloud was strong bullish signal.
Near-term bulls focus at $49.00 barrier, break of which would open way for retest of key near-term barrier at $49.40 (06 Sep high).
The action is underpinned freshly formed daily Tenkan-sen / Kijun-sen bull-cross at $47.89.
Top of thick daily cloud at $48.20 offers solid support.
Res: 48.83, 49.00, 49.40, 49.58
Sup: 48.20, 47.89, 47.74, 47.50