WTI turns positive as Russia cuts output, EIA eyed

Oil futures on NYMEX remain in a phase of bearish consolidation so far this session, having witnessed sharp declines in the overnight trades after the US API crude stockpiles data revealed a bigger-than expected build across the board.

The US crude oil inventories increased by 5.8 million barrels last week, while markets were anticipating a build of 3.06 million barrels.

Currently WTI trades neutral around $ 52.80, now looking to regain $ 53 mark. Oil prices now look to regain the bids as markets cheer reports of Russia joining the OPEC producers in output cuts. Russia cut its oil and gas condensate production by around 100,000 barrels per day (bpd) between December and January, down to 11.11 million bpd, Reuters reported.

The black gold also finds support from the latest Reuters survey published on Tuesday, which showed that OPEC's output fell by over 1 million bpd in January to 32.27 million bpd between December and January.

Oil markets now eagerly await the release of the weekly crude stockpiles report from the EIA, which will provide fresh direction on the commodity.

WTI technical levels

A break above $ 53 could yield a test of $ 53.46 (Jan 30 high). While a breach of support at $ 52 (round figure) would expose the 100-DMA support of $ 50.17.