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Oil: gains capped by strength in the USD

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - Oil prices held on to gains seen in the Asian session, but the bullish intraday momentum appears to have stalled due to the uptick in the USD index.

    At the time of writing, WTI Oil futures were up 22 cents at USD 41.94/barrel. Brent futures were up 30 cents at USD 44.48/barrel.

    Oil found respite since yesterday largely due to being oversold on the technical charts. But the gains are being capped in Europe by an uptick in the USD index.

    However, there is also increasing chatter that the build up of inventories in the US appears to have slowed down since September. Still, traders believe ample supplies are likely to prevent any sharp price gains. Earlier this week, the US Energy Information Administration said domestic crude oil inventories rose by 252,000 barrels last week, far less than the forecast of 1.1 million barrels.
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