West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices rose for the seventh day on Wednesday, after an industry report showed a further drop in inventories.
Crude inventories in the U.S. dropped by 5.8 million barrels last week to around 484.5 million barrels, data from the American Petroleum Institute showed late on Tuesday.
Also noting, last Friday, according to data released by the energy company, Baker Hughes said the oil drilling rigs count in the U.S. rose for a seventh straight week, increased by 8 to 275 rigs for the week to January 8.
From a technical perspective, with the topside target at $54.30-80 now only a ‘stone’s throw away’, could see a potential reversal from this area once, or if challenged.
Conversely, viewing the downside, the $49.40 support is expected to hold if challenged.
However, a close beneath this level would negate the bullish call and instead, potentially reinstate a bearish bias for a move to $44.90-00.