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  • Oil bulls taking back charge amid reports of falling OPEC output.  
  • Gains may be capped on oil demand concerns, ahead of API Crude Stocks data.

WTI (futures on Nymex) stalled its ten-day losing-streak and rebounded on Tuesday, as the latest report on shrinking OPEC output revived the oil bulls.  

OPEC  oil output sinks to lowest since 2011 after Saudi attacks – Reuters survey

Fresh buyers emerged near 54.20 region once again and drove the barrel of WTI back towards the 55 handle, after a Reuters survey showed that the Organization of Petroleum Exporting Countries’ (OPEC)  oil  output hit an eight-year low in September, courtesy the attack on Saudi that knocked-out the Kingdom’s output capacity.

Despite the rebound, markets remain wary that a broadly firmer US dollar and ongoing oil demand growth concerns could limit the further upside, as the focus now shifts towards the US weekly crude supply report due to be published by the American Petroleum Institute (API) later today at 2030 GMT.

WTI Levels to watch