17 Aug 2015
WTI drops 1% on firmer USD, below $ 43
FXStreet (Mumbai) - WTI oil on NYMEX keeps the red zone at the start of the new week as concerns over demand for the black gold coupled with broadly stronger greenback continues hamper the sentiment around oil.
WTI submerged amid supply glut
Currently, WTI trades -1% lower at 42.66, sitting at six year lows reached at 41.46 last week. Oil prices tanked this session after booking a seventh straight weekly fall last week, as supply-side news continues to dominate the oil market amid a rising US dollar.
Analysts at ANZ noted, "OPEC is expected to boost crude oil production to 33 million barrels per day, the most ever, after international sanctions are removed against Iran."
Adding to the further weakness in oil prices, the number of US rig count rose by 2 to 672 in the week to August 14. While, the US dollar index rose 0.07% to 96.67, making dollar-priced commodities such as oil more expensive in other currencies.
Markets now shift attention towards the weekly stockpiles report while the crucial US data releases due later this week will also be closely eyed for further impact on the USD moves, eventually affect the oil prices.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 43 levels above which gains could be extended to 44.24 levels. Meanwhile, support is seen at 41.46 levels from here losses could be extended to 39 levels.
WTI submerged amid supply glut
Currently, WTI trades -1% lower at 42.66, sitting at six year lows reached at 41.46 last week. Oil prices tanked this session after booking a seventh straight weekly fall last week, as supply-side news continues to dominate the oil market amid a rising US dollar.
Analysts at ANZ noted, "OPEC is expected to boost crude oil production to 33 million barrels per day, the most ever, after international sanctions are removed against Iran."
Adding to the further weakness in oil prices, the number of US rig count rose by 2 to 672 in the week to August 14. While, the US dollar index rose 0.07% to 96.67, making dollar-priced commodities such as oil more expensive in other currencies.
Markets now shift attention towards the weekly stockpiles report while the crucial US data releases due later this week will also be closely eyed for further impact on the USD moves, eventually affect the oil prices.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 43 levels above which gains could be extended to 44.24 levels. Meanwhile, support is seen at 41.46 levels from here losses could be extended to 39 levels.