WTI rises 1%, regains $ 67 ahead of EIA data

• Upside appears to be capped by broad-based USD strength?
• Bullish API report and supply disruption risks remain supportive.

WTI (oil futures on NYMEX) stalled its recovery-mode near $ 67.20 region and entered a phase of consolidation, as the bulls await the US Energy Information Administration (EIA) crude stockpiles report for the next push higher.

The black gold staged a solid recovery from four-day troughs after the bull received respite from the bullish American Petroleum Institute (API) report, which showed that the US crude inventories fell by 1 million barrels last week, to 428 million barrels.

Moreover, rising risks of supply disruptions, in the wake of potential US sanction on Iran as well as on the back of reduced oil output levels from Venezuela amid the political and economic crisis, also collaborated to the renewed upside in the barrel of WTI.

However, it remains to be seen if the commodity manages to extend the recovery, as the US dollar remains broadly underpinned by higher Treasury yields and better risk sentiment.

Later today, oil prices are likely to get influenced by the US Energy Information Administration (EIA) crude stockpiles data due later in the American morning.

WTI Technicals

At $ 67.06, the next resistances are aligned at $ 67.50 (classic R2/ Fib R3), $ 67.74 (Apr 16 tops) and $ 68 (round number). To the downside, supports are located at $ 66.56 (daily low), $ 66 (Apr 12 low) and $ 65.58 (4-day lows).