WTI struggling for a firm direction, stuck in a range around $53.00 mark

WTI crude oil remained confined within a narrow trading range around $53.00/barrel mark and struggled for a firm near-term direction amid subdued trading action on Tuesday. 

Fading optimism surrounding the output cut deal between OPEC and non-OPEC members, on concerns over rising US oil supplies, has failed to provide any fresh impetus for the black gold's near-term bullish trajectory. The latest Baker Hughes report showed the number of rigs drilling for oil in the US rose to 609. Adding to this, EIA's forecast that the US oil output would average 9 mbpd in 2017, up from 8.9 mbpd in 2016, also collaborated towards restricting any immediate upside for the commodity. 

Meanwhile, a drop in output by over 50,000 barrels/day, in wake of fresh clashes in Libya that resulted into closure of country's two largest ports, seems to be lending some support and limiting any immediate sharp downslide. 

With investors bracing for the upcoming Fed rate-hike move, which should boost the US Dollar and dent demand for dollar-denominated commodities - like oil, the commodity is likely to remain under some selling pressure in the near-term.

Technical levels to watch

Currently trading around $53.20-25 band, immediate resistance is pegged near $53.55 level (yesterday’s high), above which the commodity is likely to aim towards reclaiming $54.00 round figure mark before heading towards its next resistance near $54.30-40 region.

On the downside, renewed weakness below $53.00 mark, leading to a subsequent drop below $52.75 level (yesterday’s low), is likely to accelerate the downslide, even below Friday’s three-week lows support near $52.55 level and the $52.00 handle, towards testing its next major support near $51.25 area.