Oil stages a goodish recovery ahead of OPEC meeting

After yesterday's sell-off, WTI crude oil rebounded sharply on Wednesday amid uncertainty over a deal to cut / freeze production from today's OPEC meeting. 

Currently hovering around $46.00/barrel mark, up over 1.5% for the day, the black gold gained some traction after Nigerian oil minister (via BBG TV) optimistic comments on possibility of reaching a deal today. However, the broader sentiment remains bearish as investors remain skeptic of any possible agreement over output cut / freeze. 

Meanwhile, the commodity on Wednesday is also reaping benefits from yesterday's API report that showed an unexpected drop of 717,000 barrels in US domestic crude supplies for the week ended Nov. 25.  On Wednesday, official supply data from the Energy Information Administration will be released later during NY trading session and would be looked upon for reaffirmation of Tuesday's API report and might extend further support to the ongoing recovery momentum.

Technical levels to watch

Momentum above $46.00 handle, leading to a subsequent break through $46.15 session peak resistance, has the potential to lift the commodity towards $47.00 handle ahead of its next major hurdle near $47.80-85 region. On the downside, weakness back below $45.50 immedite support might now drag the commodity below $45.00 round figure mark towards its next major support near $44.65-60 region.