WTI Oil strengthens on bullish API report

WTI Oil trades on the front foot in Asia after the American Petroleum Institute (API) reported a hefty draw of 5.789 million barrels in inventories. The drop in the inventory was the biggest this year. 

At the time of writing, WTI traded around $46.14 (23.6% Fib Retracement of $53.74 - $43.79). Prices clocked a low of $45.50 in the North American session yesterday before the bullish API report triggered a recovery. 

However, it is worth noting that gasoline inventories rose by 3.169 million barrels, against an expected draw of 700,000 barrels. That could be the reason why oil prices are struggling to extend gains beyond $46.14 levels. 

The recovery in the oil prices could be short lived if the EIA report due today shows another rise in the gasoline inventories.