WTI extends the advance to $ 51.50, EIA report eyed

Oil futures on NYMEX extends its rebound for the second straight session, now printing fresh four-week tops near the mid-point of 51 handle.

The black gold is on a roll higher, as the bulls cheer fresh signs of tightening supplies, after the US API inventory report showed a drawdown in the stockpiles. The US crude stocks fell by 1.8 million barrels last week to 533.7 million, API data showed.

Moreover, looming supply disruption concerns in Libya combined with supply outage in the United Kingdom's North Sea added to renewed hopes of tighter markets, boosting the commodity to the highest levels since March 8.

Attention now turns towards the US ADP jobs data and FOMC minutes for fresh impetus on the USD-sensitive oil. Also, the US EIA inventory figures due to be published in the NA session will throw fresh light on the supply-side scenario, having major impact on the prices.

WTI technical levels 

A break above $ 52 (100-DMA) could yield a test of $ 52.92 (March 8 tops) beyond which $ 53.50 (psychological levels) could be tested. While a breach of $ 51 mark would expose Classic and Fib S1 at $ 50.20, below which downside opens up for a test of $ 49.58 (200-DMA).