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US desks respond to bearish OPEC report, send WTI oil lower

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The offered tone around WTI futures gathered traction in the US session, sending prices near previous day’s low of USD 27.73/barrel.

    Strong USD weighs

    Apart from the bearish OPEC monthly report, prices also came under pressure due to a moderate uptick in Gold prices following the release of a not so dovish Yellen statement. Earlier today, the OPEC report revised its 2016 global oil demand growth lower.

    The bearish OPEC report came a day after the report from International Energy Agency (IEA) which said the supply glut is likely to be bigger than expected earlier. The traders now await the US weekly inventory report.

    WTI Technical Levels

    The futures currently trade around USD 27.85/barrel, with immediate support seen at 27.55 (Jan 20 low), which if taken out shall open doors for a drop to 27.00 levels. On the higher side, the daily low of 28.73 could act as a resistance, above which prices could test 29.41 (Feb 3 low).
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