WTI clocks 2-week tops near $ 62.90 ahead of API report

• Bulls take a breather ahead of API crude inventories report.
• Middle East tensions and Venezuelan tumbling output support.

WTI (oil futures on NYMEX) extended its five-day winning streak and hit fresh two-week tops just shy of the $ 63 mark before entering a phase of bullish consolidation, as the focus now shifts towards the US American Petroleum Institute (API).

The barrel of WTI accelerated its last week’s rebound, as the sentiment was underpinned by rising Middle East tensions while supply disruption concerns on account of falling Venezuelan output levels also collaborated to the renewed upside in the prices.

According to the recent International Energy Agency (IEA) report, Venezuela, where an has cut oil production by almost half since early 2005 to well below 2 million barrels per day (bpd), in the wake of the economic crisis, was "clearly vulnerable to an accelerated decline".

Moreover, the latest Bloomberg headlines citing that the OPEC and non-OPEC members see oil market rebalancing in Q3 this year also help keep the buoyant tone intact around the black gold.

However, further upside remains dependent on the outcome of today’s US API crude stockpiles data, which will offer fresh insights into the US supply-side scenario.

WTI Technicals

At $ 62.72, the resistances are aligned at $ 63 (round number), $ 63.50 (psychological levels) and $ 63.73 (Feb 23 high). On the flipside, the supports are located at $ 62.56 (50-DMA), $ 62.13/04 (5-DMA & daily pivot) and $ 61.83/79 (20 & 10-DMA).