WTI holds positive tone on Venezuela; US crude inventories report eyed for fresh signals

WTI oil maintains positive tone on Wednesday and extended into the upper part of near-term $54.48/$51.32 congestion, after Tuesday’s bullish close neutralized downside risk.
Concerns on oil supply disruption to the US on fresh sanctions on Venezuela keep oil prices supported, but pessimistic outlook for global growth which could reduce demand for energies, partially offsets positive impact.
API report on Tuesday showed build of 2 million barrels, significantly lower than previous week’s 6.5 million barrels rise in US crude stocks, with focus turning towards EIA crude inventories report, due later today (3.1 mln bls f/c vs 7.9 mln bls build last week).
Bullishly aligned daily techs underpin near-term action, but directionless near-term mode would remain while the price holds within the range.
Break above 21 Jan high at $54.48 would generate initial bullish signal, with extension above $55.55 (Fibo 38.2% of $76.88/$42.36) needed to confirm continuation of recovery phase from $42.36 (24 Dec low).
Broken 10SMA ($53.14) marks immediate support at, with lower pivots provided by diverging 10/55SMA’s ($51.82 & $51.15 respectively), break of which would generate stronger bearish signal.

Res: 53.91; 54.48; 55.00; 55.55
Sup: 53.14; 52.43; 51.82; 51.15