WTI rebounds above $69 ahead of API inventory data

• WTI reversed its direction following a three-day decline.
• Supply dynamics support crude oil prices on Wednesday.
• Focus shifts to the API's oil inventory data.

After dropping below $68 on Tuesday, the barrel of West Texas Intermediate gained traction on Wednesday and was last seen rising 1.35% on a daily basis at $69.30.

Declining oil output supports WTI

Although crude oil started the new week on the back foot amid renewed concerns over a weak demand outlook, supply-side dynamics provided a boost to prices.

Oil producers in the Gulf of Mexico continue to operate at a fraction of their full capacity due to Hurricane Ida. Additionally, citing an oil engineer, Reuters reported on Wednesday that protesters are blocking oil exports at Libya's Es Sider and Harouge ports.

Later in the day, the American Petroleum Institute (API) will release its Weekly Crude Oil Stock data ahead of the US Energy Information Administration's (EIA) Crude oil Stocks Change data for the week ending September 3 on Thursday. 

Meanwhile, CME Group’s preliminary readings for crude oil futures markets revealed that traders added around 4.5K contracts to their open interest positions on Tuesday.

Crude Oil Futures: Probable consolidation ahead.

Technical levels to watch for