WTI drops further below $45.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - Crude oil prices are extending its weekly decline on Friday, currently hovering over the $44.50 area per barrel.

    WTI weaker following US Payrolls

    The strong results from the US labour market during October saw Non-farm Payrolls (271K) re-igniting expectations of a rate hike in December – probability is around 70% - boosting the demand for the greenback and punishing the USD-denominated assets, dragging in turn the barrel of WTI back to sub-$45.00 levels, or multi-day lows.

    Collaborating with the selling mood, reports showed that OPEC countries remain reluctant to cut their output, adding to the already mounting fears over the current supply glut.

    Ahead in the session, US oil rig count by driller Baker Hughes will be the only scheduled release.

    WTI levels to watch

    At the moment the barrel of West Texas Intermediate is losing 1.64% at $44.45 with the next support at $41.78 (low Aug.28) ahead of $40.85 (23.6% Fibo of $37.75-$50.92) and finally $37.75 (2015 low Aug.24). On the other hand, a surpass of $47.99 (downtrend from $50.92) would aim for $48.36 (high Nov.3) and then $50.71 (200-day sma).
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