Oil seesaw around $45.00 mark as traders brace for API report

WTI crude oil reversed all of its early gains and turned back sharply lower to test mid-$44.00s before retracing quickly to currently trade back around $45.00/barrel mark as traders turn their attention to key US oil stockpiles data. 

Earlier on Wednesday, the black gold cruised higher to $45.39 as a broadly weaker greenback boosted demand for dollar-denominated commodities. In absence of any fundamental trigger, a minor greenback recovery could be the cause of a sudden reversal witnessed during the past hour. However, renewed USD selling pressure limited further downslide and helped the commodity to recover from session lows. 

Oil traders will now focus on the weekly API report on US crude stockpiles. On Thursday, EIA will release the official weekly update on weekly domestic US crude oil inventories, which is expected to show oil inventories rose further during the week ended Sept. 2.

Technical levels to watch

From current levels, sustained move above $45.40-50 region seems to boost the commodity beyond $46.00 mark towards weekly high resistance near $46.50 level. On the flip side, decisive break below session low support near $44.50 should now drag the commodity below $44.00 intermediate support towards testing its next major support near $43.50 zone.