WTI: Recovery stalls near $ 63.50 ahead of API data

• Will the US API crude stockpiles report aid the recovery?
• Global trade war fears and easing US output levels underpin.

The recovery in WTI (oil futures on NYMEX) from nine-day lows of $ 62.84 lost legs near the midpoint of the 63 handle, leaving the prices consolidating in a tight range above the $ 63 mark.

The bulls were offered respite by expectations of a potential slowdown in the US crude output growth. However, the gains appear limited amid increased nervousness ahead of the US American Petroleum Institute (API) crude supplies report due later in the American session.

On Monday, the barrel of WTI witnessed a steep drop amid reports that Saudi Arabia is seen cutting its selling prices to Asia while concerns over rising Russian production levels also added to the weight on the commodity.

WTI Technicals

Joshua Gibson, Analyst at FXStreet, noted: “After Monday's decline, support is thin for crude at Monday's low of 62.75, and the next support zone is mid-March's swing high at 62.25, while resistance sits at the week's current high of 65.35, with near-term resistance at the 64.00 handle, the 50.0 Fibo level of yesterday's move lower.”