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WTI drops as US agrees to lift 40-year oil exports ban

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The overnight recovery in the oil prices lost steam and the black gold fell back in the red on increased nervousness ahead of the EIA weekly report and the crucial Fed decision.

    WTI trades below $ 37/ barrel

    Currently, WTI drops -1.11% to 36.94, retreating from 37.20 highs. Oil price recovery remained short-lived as the bears returned to markets on reports that the US congress finally agreed to lift the 40-year-old ban on crude oil exports, further adding to the already persisting supply glut scenario and initiating fresh round of oil-price war across the globe.

    Moreover, markets remain on the back foot and refrain from placing big bets ahead of the weekly EIA crude reserves report. Crude inventories in the US are expected to shrink by 500,000 barrels in the week to December 11, which would be the second straight weekly drop.

    Further, the upcoming Fed outcome on the US interest rates is likely to have huge impact on the USD moves, eventually influencing dollar-denominated oil prices.

    WTI Oil Technical Levels

    WTI oil has an immediate resistance which stands at 37.20 (daily high) above which gains could be extended to 37.88 (Dec 15 High). While to the downside, the immediate support is at 36.38 (Dec 10 low), below which the prices could drop to 36.03 (Dec 15 Low).
    For more information, read our latest forex news.

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