WTI sees minor-recovery from 3-month lows, near $ 41

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - WTI oil prices halted its downward spiral and ticked higher in Asia, recovering part of Friday’s steep losses.

    WTI finds good support ahead of $ 40

    Currently, WTI trades 0.45% higher at 40.92, steadying around session highs posted at 41.12 levels. Oil prices posed a minor rebound in Asia as the French air strikes on Syria in response to the weekend’s terror attack on Paris acted as a net positive for the black gold.

    However, the upside remains short-lived as the persisting oversupply worries and swelling crude reserves remain a drag on oil prices. Moreover, oilfield services company Baker Hughes said on Friday that the number of active US rigs rose by 2 to a total of 574 for the previous week, which further adds to the bearish trend.

    Markets now await the FOMC minutes for fresh USD moves and the weekly crude inventories report from both API and EIA for further momentum on oil.

    WTI Oil Technical Levels

    WTI oil has an immediate resistance which stands at 41.69 (1h 50-SMA) levels above which gains could be extended to 42.72 (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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