WTI rebounds, turns flat above $50 on less-than-expected build in US crude oil inventories

Crude oil prices gained traction in the post-settlement trade after the data from the American Petroleum Institute showed a smaller-than-expected build in U.S. crude oil stocks. As of writing, the barrel of West Texas Intermediate was trading at $50.30, only 5 cents below its opening level.

"Crude inventories rose by 1.4 million barrels in the week to Sept. 15 to 470.3 million, compared with expectations for an increase of 3.5 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 422,000 barrels, API said," Reuters reported.

The barrel of WTI could extend its gains on Wednesday as investors are likely to start pricing a similar reading in tomorrow's weekly crude oil stock report, which will be released by the Energy Information Administration (EIA). Moreover, OPEC is looking to continue with its efforts to balance the market. On Tuesday, Iraqi oil minister Jabar al-Luaibi said that some members of the organization were willing an extension to supply cuts until the end of 2018. 

Technical levels to consider:

The initial hurdle for the barrel of WTI aligns at $50.80 (daily high) ahead of $52 (May 25 high) and $53 (psychological level). On the flip side, supports could be encountered at $49.20 (Sep. 18 low), $48.20 (20-DMA) and $47.35 (100-DMA).