WTI regains $ 61 mark, but still down -1%

• Higher DXY, risk-off weigh.
• Focus shifts to the US EIA crude inventory report.

WTI (oil futures on NYMEX) is seen making minor recovery attempts back above the 61 handle, but remains heavily offered for the second straight session ahead of the US EIA crude stockpiles data.  

The barrel of WTI keeps losses, as the sentiment remains dented by ongoing US dollar buying across its main competitors, as investors prefer to hold the US currency heading into the FOMC minutes, which will be published later in the American session. A stronger US dollar makes the USD-denominated oil more expensive for the holders in foreign currencies and vice-versa.

Additionally, the negative performance seen on the European indices, spurred a fresh risk-aversion wave, affecting negatively the demand for the higher-yielding assets such as oil. Meanwhile, expectations of a rise in the US crude output on the release of the EIA weekly crude inventory report also collaborates to the downside in the commodity.

According to a Reuters poll, the EIA inventory report is expected to show that crude oil stockpiles rose 1.3 million barrels in the week to Feb. 16.

The official US government figures on the US crude supplies will be released on Thursday, a one-day delay because of the President’s Day holiday on Monday.

WTI Technical Levels

At $ 61.20, the resistances are aligned at $61.73 (5-DMA), $62.18 (20-DMA) and $62.61/64 (50-DMA/ 4-day tops). On the downside, the supports are located at $60.92 (daily low), $60.27 (Feb 8 low) and $ 60 (psychological support).