WTI doesn't react to API stock data, remains below $60

• Crude oil's recent rally falters on Wednesday.
• WTI settles $59.65, down 33 cents, or 0.55% on the day.
• API reports a 6 million barrels drawdown in crude stocks.

Crude oil prices remained apathetic to the API's weekly crude oil stock data and the barrel of West Texas Intermediate stayed quiet near $59.60, where it settled for the day with a 0.55% loss.

The American Petroleum Institute on Wednesday reported that crude oil inventories in the United States decreased by 6 million barrels in the week to December 22 to 432.8 million. Further details of the report revealed that refinery crude runs increased by 268,000 barrels per day while gasoline stocks rose by 3.1 million barrels.

On Tuesday, the barrel of WTI rose above the $60 mark for the first time since June 2015 on the back of recent developments that impacted the global supply negatively. Following the news of armed men attacking and blowing up a pipeline transferring crude oil to Libya's Es Sider port, the state-run National Oil Corporation (NOC) in a statement announced that the country's output had been cut down by 70,000-100,000 bpd. In the meantime, Forties pipeline is not expected to return to full capacity until early January.

Commenting on the market reaction to the supply disruptions, "while supply impact is immaterial, it shows that with the market structurally undersupplied and inventories continuing to draw, geopolitical risk has now re-emerged as an important factor in day-to-day trading dynamics," analysts at Tudor Pickering Holt Energy Research told Reuters.

Technical levels to consider

With a decisive break above $60, the barrel of WTI could aim for $60.65 (Jun. 1, 2015, high) and $61.10 (May 5, 2015, high). On the downside, supports could be seen at $59.30 (daily low), $58.30 (Dec. 26 low) and $57.60 (Dec. 21 low).