WTI retesting $56, Yemen bombing supports

FXStreet (Mumbai) - WTI oil futures on the Nymex capped losses and trades marginally lower in the European session, as reports of renewed bombing in Yemen boosted oil prices from high US stock piles led trough.

WTI recovers

Currently, WTI trades nearly -0.44% lower at 55.93 levels, retreating from 55.81 lows. Crude managed to fight back previous losses after reports that warplanes from a Saudi Arabia-led coalition bombed Yemen on Wednesday which supported the black gold.

However, oil prices remain pressured after the weekly inventory data revealed a fresh record high for US crude stockpiles. Oil inventories in the US rose 5.3 million barrels in the week to April 17, the Energy Information Administration (EIA) said in its weekly report on Wednesday, rising for the 15th straight week and bringing the total to new record of 489 million barrels.

Oil Technical Levels

WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.60 levels. Meanwhile, support is seen at 55 levels from here losses could be extended to 53.50 levels.