WTI extends losses below $ 53, EIA report eyed

Oil futures on NYMEX stalled its consolidative mode and broke to the downside in the European session, largely in response to broad based US dollar rally, which weighed on the USD denominated oil.

The USD index, which track the performance of the greenback against a basket of six major currencies, leaps +0.82% to fresh six-day highs of 100.66.

The black gold also remains weighed down by prospects of growing US oil production, in wake of a revival in U.S. shale production and sluggish demand. Further, reports of softening crude oil imports from China, world’s second largest oil consumer, collaborated to the downbeat tone in oil prices.

Later today, oil prices will get influenced by the private sector crude stockpiles data from the API due later in the American session.

WTI technical levels

A break above $ 53.46 (5-DMA) could yield a test of $ 54 (round number). While a breach of support at $ 52.50 (psychological levels) would expose the Jan 20 low of $ 51.39.