WTI extends losses below $50 ahead of API report

Crude oil prices came under pressure during the second half of the day on Tuesday as investors started to price another buildup in the U.S. inventories, pushing the barrel of West Texas Intermediate to a fresh session low at $49.84 As of writing, the barrel of WTI was trading at $49.95, losing 0.85% on the day.

Earlier in the day, Iraq's oil minister Jabar al-Luaibi said, "it is premature to come to a conclusion or decision seven months before March. There are talks, dialogues and an exchange of visions," at an energy conference in the United Arab Emirates. "The market now is reaching a good position of stabilisation. There is an improvement in the market, so let us wait (and see) how the improvement gets from now until March. It is very early now to judge and decide what to do," Al-Luabili further added, ramping up the expectations of OPEC taking further steps to balance the oil market and lifting the barrel of WTI to its highest level since May 25 at $50.80.

• Iraqi OilMin Luaibi: Iraq has fully complied with OPEC supply cuts

However, the impact of Hurricane Harvey is likely to continue to impact the stock data in the U.S., which doesn't allow crude oil to stage a more decisive rise. "Analysts forecast crude stocks rose 2.9 million barrels last week, as fuel inventories drew down, which would continue a trend established in the wake of Hurricane Harvey, as imports resumed while refineries were still restarting," according to Reuters.

Technical levels to consider:

The barrel of WTI could encounter the first technical support at $49.20 (Sep. 18 low) ahead of $48.20 (20-DMA) and $47.35 (100-DMA). On the upside, resistances align at $50 (psychological level), $50.80 (daily high) and $52 (May 25 high).