WTI Oil nears $50.00 in Asia as Brexit chances drop

US oil prices neared $50.00 handle in Asia following a 3% rally on Monday as falling Brexit bets kept USD on a weaker footing.

Genscape data support prices

Data from Genscape, a market intelligence firm, released yesterday showed a drawdown of 568,213 barrels at the Cushing, Oklahoma in the week to June 17. Meanwhile, Brexit polls released over the weekend and on Monday showed sentiment is once again titling towards ‘remain’ group. Experts believe oil prices could stay firm as long as Brexit appears unlikely.

Oil traders would keep an eye on the Brexit related news flow and the impact on the US dollar. Later in the day, weekly inventory report from the American Petroleum Institute (API) would be watched out by traders as well.

WTI Oil Technical Levels

Oil currently trades around $49.72/barrel. The immediate support is seen at $48.95 (rising trend line support on daily), under which support at $47.75 (June 1 low) and $46.67 (50-DMA) stand exposed. On the other hand, violation at $50.00 (psychological resistance) would shift risk in favor of a rise to $50.72 (June 10 high) and $51.64 (June 9 high).