WTI extends advance to fresh monthly high post API data

Crude oil prices received an additional boost from the API stock data and built on the daily rise with the barrel of West Texas Intermediate refreshing the monthly high at $53.44.

On Tuesday, the American Petroleum Institute said U.S. crude oil inventories fell by 1.3 million barrels last week, following a 1.8 million drop seen in the previous report. The weekly inventory report from the Energy Information Administration due to be released tomorrow during the NA session now has the potential to record a drop as well.

Earlier during the session, the WTI was able to reverse its daily losses after a recent report by the Wall Street Journal suggested that Saudi Arabia told OPEC officials it wants to extend production cuts enacted in January for another six months when the group meets in May.

• Saudi Arabia wants OPEC to extend production cuts - WSJ
• OPEC's 11 states with oil output targets comply 104% with curbs in March - RTRS

However, some experts argue that rising concerns about North Korea and Syria could hurt the short-term oil demand, making it difficult for the recent uptrend to continue.

The initial hurdle for the barrel of WTI aligns at $53.80 (high Mar.6) followed $54.44 (Mar. 1 high) and $55 (psychological level). On the downside, supports could be seen at $52.70 (daily low), $52.30 (Monday low) and $51.50 (Apr.7 low).