WTI price is preserving a part of previous gains ahead of US inflation.
Bulls cheer drawdown in US crude stockpiles, as Iran supply concerns loom.
Upside appears more compelling if the daily rising trendline support holds.
A hotter US inflation report could boost the aggressive Feds tightening expectations, triggering a big leg up in the dollar, which could weigh negatively on the USD-denominated oil.
Further, looming concerns over a probable return of the Iranian oil supplies to the global markets, as Iran nuclear deal talks enter the final stretch, also keep the upside attempts limited in the black gold.
However, WTI bulls remain somewhat supported, courtesy of a big drawdown in the US crude stockpiles data published by the Energy Information Administration (EIA) on Wednesday.
The latest EIA data showed that the “US crude stocks fell by 4.8 million barrels last week to 410.4 million barrels, their lowest since October 2018, while overall product supplied, a proxy for demand, hit a record 21.9 million barrels per day over the past four weeks,” per Reuters.
All eyes now remain on the US inflation release and the sentiment on Wall Street for fresh trading impetus on the higher-yielding oil.
From a near-term technical perspective, WTI bulls manage to defend the over two-month-long rising trendline support at $88.42.
The 14-day Relative Strength Index (RSI) has pulled back from the overbought region, allowing room for a fresh upside.
The next bullish target is seen at $90.00, above which the February 8 highs of $90.61 will be challenged.
On the flip side, a breach of the aforesaid critical support will expose the ascending 21-Daily Moving Average (DMA) at 86.47.
The last line of defense for bulls is aligned at $86 – the round level.
WTI: Daily chart
