WTI jumps 1% to $ 53 on tighter supply, API data eyed

Oil futures on NYMEX is seen reversing a small portion of yesterday’s heavy declines on the back of renewed expectations of tighter supplies this year, in wake of OPEC output curb deal

Oil finds support just ahead of $ 52 mark

Currently WTI rallies +1.13% and tests daily tops reached at $ 52.96 last hours. Oil prices ran through fresh bids in the European session, mainly driven by fresh selling in the US dollar across the board. A weaker US dollar makes USD-denominated oil cheaper for the foreign buyers.

While sentiment around oil also remains buoyed amid expectations that the OPEC and non-OPEC producers will abide by the OPEC output cut agreement, which would result in tighter supply in the year ahead.

Next of relevance for oil remains the API crude inventory report due on the card in the American session today.

WTI technical levels

A break above $ 53.33 (5-DMA) could yield a test of Dec 12 high of 54.57. While a breach of support at $52.26 (Dec 23 low) would expose the daily S1 of $51.22.