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West Texas Intermediate (WTI) Crude Oil edges higher on Wednesday, extending gains for the second consecutive session as traders react to a surprise draw in US inventories. The recovery comes after WTI slipped to its lowest level since May 5 on Monday, when prices briefly dipped below the $57.00 mark amid concerns over potential supply glut and sluggish global demand.

At the time of writing, WTI trades around $58.43 per barrel, up nearly 1.50% on the day, as a softer US Dollar (USD) lends additional support to prices.

The latest data from the US Energy Information Administration (EIA) showed that commercial crude inventories fell by 0.96 million barrels in the week ending October 17, bringing total stocks down to 422.8 million barrels. Gasoline and distillate inventories also dropped by 2.1 million and 1.5 million barrels, respectively.

The draw across major fuel categories offered short-term support for Oil prices, offsetting persistent worries about oversupply. Recent projections from the International Energy Agency (IEA) highlight that global Crude supply continues to outpace demand, raising the risk of an inventory build-up through early 2026.

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From a technical standpoint, the broader structure, however, still reflects a bearish bias as prices remain below the cluster of short-term moving averages, with the 21-day SMA at $60.46, the 50-day at $62.03, and the 100-day at $64.22. The area around $60.00-$62.00, therefore, represents a heavy resistance zone.

A decisive daily close above this region could mark a shift in momentum, opening the door toward $64.00-$65.00 and potentially neutralizing the recent downtrend.

Momentum indicators are showing early signs of stabilization. The Relative Strength Index (RSI) has rebounded from near-oversold levels and currently stands around 41, suggesting that bearish momentum is fading but recovery momentum remains fragile.

Meanwhile, the Moving Average Convergence Divergence (MACD) histogram has narrowed, and the signal lines are flattening, hinting at the possibility of a bullish crossover in the coming sessions if buying pressure persists. On the downside, immediate support is seen at $57.00, followed by the May swing low near $55.00.

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