WTI: Recovery stalls just below $ 52, EIA report eyed

Oil futures on NYMEX stalled its Asian recovery mode and consolidates in a narrow range below $ 52 mark, as resurgent USD demand versus its main competitors keeps a check on the upside.

Meanwhile, the USD index advances +0.19% to 100.60, flirting with daily highs reached at 100.63 in the last hour. A stronger greenback makes the dollar denominated commodity more expensive to the buyer in foreign currencies.

The black gold remains heavily offered as sentiment remains weighed down by the bearish API crude inventory report released a day before, which showed that a huge build in the US crude stockpiles.

Rising US crude reserves added to the concerns over growing US shale output levels, further exacerbating the pain in oil.

Later today, the EIA crude stockpiles data will be due on the cards, which will confirm the stockpile surge that will be the largest build since October, Reuters reported.

WTI technical levels

A break above $ 52.90 (5-DMA) could yield a test of $ 53.50 (psychological levels). While a breach of support at $ 51 (round figure) would expose the 100-DMA support of $ 50.37.