21 Jul 2015
WTI drops to 4-month lows, challenges $ 50
FXStreet (Mumbai) - WTI oil prices on NYMEX holds moderate losses in the European morning, extending its three-week long decline as stronger greenback on increased rate-hike bets and swelling glut in US refined products continue to drag the black gold lower.
WTI testing $ 50
Currently, WTI trades -0.43% lower at 50.23, on its way to challenge 50 levels. Oil prices continued falling on Monday as traders assess the potential consequences of the Iranian nuclear deal and a growing glut in US refined products on one side and a fall in Saudi crude exports and slower US rig activity on the other side.
Moreover, the US dollar's strength weighed on the oil prices as the US dollar index - a virtual measure of the greenback's power against its six major peers - stood at 98.24, the highest since late April. WTI crude tends to inversely correlate with the dollar.
API crude stock piles report due for release later
today and EIA weekly report on Wednesday may provide fresh cues on the oil prices for the week ahead.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 51.58 levels above which gains could be extended to 52.54 levels. Meanwhile, support is seen at 50 levels from here losses could be extended to 48.79 levels.
WTI testing $ 50
Currently, WTI trades -0.43% lower at 50.23, on its way to challenge 50 levels. Oil prices continued falling on Monday as traders assess the potential consequences of the Iranian nuclear deal and a growing glut in US refined products on one side and a fall in Saudi crude exports and slower US rig activity on the other side.
Moreover, the US dollar's strength weighed on the oil prices as the US dollar index - a virtual measure of the greenback's power against its six major peers - stood at 98.24, the highest since late April. WTI crude tends to inversely correlate with the dollar.
API crude stock piles report due for release later
today and EIA weekly report on Wednesday may provide fresh cues on the oil prices for the week ahead.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 51.58 levels above which gains could be extended to 52.54 levels. Meanwhile, support is seen at 50 levels from here losses could be extended to 48.79 levels.