WTI (futures on Nymex) bulls are back in the game, battling the $68 level amid a fresh risk-on wave that gripped the European market. At the time of writing, the US oil rises 1.35% on the day to trade at $68.11, looking to regain the $68.50 level. After a retreat in the overnight trades due to an unexpected build in the US crude stockpiles reported by the American Petroleum Institute (API), WTI entered a consolidative mode in the Asian session.

However, with the return of risk appetite, the bullish streak is unleashed ahead of Energy Information Administration (EIA) US crude supplies report. Late Tuesday, the API reported that the US crude stocks rose by 806,000 barrels for the week that ended July 16 vs. expectations of a fall of about 4.5 million barrels. Meanwhile, the European stocks shrug off the cautious mood seen during the Asian trades and advanced amid strong earnings reports, lifting the sentiment around the higher-yielding oil. A sharp pullback in the US dollar across its main rival on a sudden turnaround in the risk sentiment also bode well for the dollar-denominated commodity.