WTI reverses sharply to test $ 44 mark ahead of API report

Oil futures on NYMEX turned back into negative territory in the European session, after having failed once again just below $ 45 mark.

Focus on API crude stockpiles report

The black gold resumed is losing streak in Europe, after a corrective upmove seen in the Asian trades, as omnipresent oversupply worries continue to haunt markets.

Additionally, the sentiment around oil also remains weighed by downward revisions by several banks to their oil-price forecasts amid rising OPEC and US oil production levels, which outweigh any impact of the OPEC oil output cut deal.

According to Reuters, Barclays bank slashed its average 2017 and 2018 Brent price forecasts to $52 per barrel for both years from $55 and $57 per barrel respectively.

Looking ahead, the commodity will find fresh impetus from the US API crude inventory report due to be released later in the American afternoon. At the time of writing, WTI drops -0.54% to $ 44.16, while Brent also slides -0.64% to 46.55 levels.

WTI technical levels 

Higher side: $ 44.91/$ 45 (daily top/ zero figure), $ 45.42 (Jul 7 high), $ 46 (key resistance)

Lower side: $ 43.67 (Jun 28 low), $ 43 (key support), 42.26 (Jun 22 low)