WTI tested $ 59 support on IEA report

• Bearish IEA report weighs.
• Bulls find support from weaker USD.
• US API inventories report on tap.

Having witnessed a volatile session a day before, WTI (oil futures on NYMEX) stabilized almost throughout the Asian session, before meeting fresh supply in Europe, following the release of the latest IEA monthly oil outlook report.

The IEA said in its report that the non-OPEC supply, led by the US, is likely to grow more than the demand in 2018 offset the upward revision to this year’s global oil demand growth.

The barrel of WTI also wiped-out gains as risk sentiment soured on weakening European equities while increased nervousness ahead of the weekly US crude supplies report also keeps the black gold on the back foot.

Meanwhile, the downside should find some support amid broad-based US dollar tumble, as markets await the API crude stockpiles report due later on Tuesday.

WTI Technical Levels

At $ 59.14, supports are located at $ 58.90 (classic S1/ Fib S2), $58.07 (multi-week lows) and $57.87 (Dec 22 low). On the upside, the resistances are aligned at $59.50 (psychological levels) ahead of $59.84 (daily pivot) and $60.00 (round figure).