WTI rallies after France retaliates with air strikes in Syria

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - WTI oil prices rebounded higher on Monday as sentiment around the black gold was lifted on news of French air strikes on Syria in response to the Islamic State’s terror attack.

    WTI extends further from $ 41

    Currently, WTI trades 1.84% higher at 41.49, hovering close to fresh daily highs posted at 41.54 levels in last hours. Oil prices staged a solid comeback from three-month lows and rallied nearly 2% this session boosted by rising worries over supply disruptions after France launched massive airstrikes in Syria in retaliation to Friday's terrorist attacks.

    Analyst at IG noted, "Oil price moves have been relatively muted so far, but as the probability of Western boots on the ground in Syria increases, this is likely to see a corresponding increase in the oil price."

    Meanwhile, the oil prices completely ignored persisting broad based US dollar strength, as traders favor the US currency amid looming uncertainties post-Paris atrocities.

    Later this week, the FOMC minutes will hog the limelight while the weekly crude inventories report from both API and EIA will be also closely eyed.

    WTI Oil Technical Levels

    WTI oil has an immediate resistance which stands at 42 (round number) above which gains could be extended to 42.57 (1h 100-SMA). While to the downside, the immediate support is at 40.22 (Nov 13 Low), below which the prices could drop to 39.86 (Aug 21 Low).
    For more information, read our latest forex news.

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