WTI firmer above $ 53 amid weaker DXY & upbeat outlook

Oil futures on NYMEX moved off highs, although clings to gains above $ 53 mark, as investors ‘sentiment remains favorable amid hopes of tighter markets in 2017 and a negative US dollar across the board.

Oil eyes weekly supply reports

Currently WTI advances +0.60% to $ 53.27, having found fresh demand just ahead of 53 handle. Oil prices are seen consolidating in positive territory, with the bulls finding impetus from expectations of tighter oil markets next year.

While broad based profit-taking slide seen in the US dollar, after last week’s hawkish Fed-led rally, also keeps the sentiment buoyed around the USD-sensitive oil. A weaker dollar makes the USD-denominated commodity cheaper for foreign buyers.

Moreover, upgrade revisions to the Oil price forecasts for 2017 by Goldman Sachs and JP Morgan, further adds to the bullish tone behind oil prices.

Markets now look forward to the weekly crude stockpiles report from the US due later this week for further insights on the supply-side scenario.

WTI technical levels

A breach of support at $53 (zero figure) would expose the 10-DMA support of $52.22. While a break above $53.59 (daily top) could yield a test of Dec 12 high at 54.51.