Oil back above $50.00 level, gains for fourth consecutive session

Extending its recovery for fourth consecutive session, WTI crude oil rose further beyond $50.00/barrel mark to currently trade at two-week high level as global risk-on sentiment continues to boost demand for riskier assets - like commodities, including oil.

On Wednesday, oil prices continued to surge higher on expectations that the official weekly EIA report, scheduled for release later during NY session, would to show a decline of 1.2 million barrels in US crude inventories. Moreover, a broadly weaker greenback is also extending support for dollar-denominated commodities - like oil.

On Tuesday, the black gold rebounded sharply and climbed back above $50.00 mark after the API reported US crude oil supplies dropping by 5.2 million barrels over the week ending June 17. The drop was higher-than 1.5 million barrels of expected decline.

Technical levels to watch

The commodity need to build on to its gains above $50.40 immediate resistance, above which it seems all set to extend its upward trajectory, beyond $51.00 mark, towards recent multi-month highs daily closing highs resistance near $51.35-40 region. A convincing break through multi-month highs would open room for further appreciating move for the black gold.

On the flip side, dip back below $50.00 mark and a follow-through selling pressure below $49.75-70 intermediate support, seems to drag the commodity back below $49.00 handle towards testing $48.70-65 horizontal support.