WTI: Steady near $ 52.50 in Asia, focus on EIA data

• OPEC output cuts, potential Venezuela sanctions and risk-on underpin.
• Attention turns towards US EIA crude stockpiles for near-term trading opportunities.  

WTI (oil futures on NYMEX) kicks-off Thursday’s Asian session on the front foot amid fresh optimism over the US-China trade talks that boosted the appetite towards the higher-yielding oil while the US stocks also managed to close into the green zone.

The risk-on sentiment offset the recent bearish API crude stockpiles data, leaving the black gold somewhat underpinned. The latest API data released showed that the US crude inventories increased 6.6 million barrels, compared with analysts’ expectations for a decrease of 42,000 barrels, Reuters reports.

Meanwhile, markets digest the latest reports of potential US sanctions on Venezuela’s crude oil exports, which could make the oil markets tighter, with the OPEC output cuts already underway.

On Wednesday, oil prices slipped nearly 1% on the reports that the European Union (EU) is considering to circumvent US trade sanctions against Iran while weaker US gasoline prices further added to the weight on the US oil.

Markets now look forward to the release of the EIA crude stockpiles data due later today at for fresh trading impetus.

WTI Technical Levels