West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices slipped away from the 11-month highs after U.S. oil stockpiles fell more than expected in the latest week, the Energy Information Administration said on Wednesday.
Crude inventories fell 3.247 million barrels last week, compared with analysts’ expectations for a 2.26 million-barrel draw.
From a technical perspective, with the topside target at $54.30-80 remains just a ‘stone’s throw away’, could still 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.