WTI struggles to take on the recovery above $ 58 mark, EIA data eyed

  • Bulls remain wary amid cautious sentiment, ahead of EIA crude stocks data.
  • US-China trade stand-off and Iranian geopolitical tensions weigh.

WTI (futures on Nymex) stalled its steady recovery from weekly lows and now consolidates just below the 58 handle, as the bulls await the US Energy Information Administration (EIA) crude stockpiles data for fresh trading impetus.

A pause in the US dollar rally across its main competitors so far this Wednesday somewhat aided the steady recovery in the USD-sensitive oil. However, nervousness ahead of the EIA crude inventories report combined with cautious market sentiment keep the recovery in check.

The barrel of WTI fell to fresh weekly lows of $ 57.08 after the latest data released by the American Petroleum Institute (API) showed a smaller-than-expected drop in the crude inventory levels.

According to API data, the US crude inventories fell by 1.4 million barrels in the week to July 12 to 460 million barrels, when compared with expectations for a drop of 2.7 million, Reuters reports.

Further, a lack of progress on the US-China trade talks as well as the US-Iran geopolitical stand-off weighs down on the sentiment around oil. Attention now turns towards the official crude stocks data from the US government’s EIA, due on the cards at 1430 GMT for the next direction on the prices.

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