25 Aug 2015
WTI firmer, on its way to $40.00?
FXStreet (Edinburgh) - The barrel of the West Texas Intermediate is rallying more than 3% on Tuesday, recovering levels above the $39.00 handle.
WTI stronger post-PBoC
After hitting multi-year lows just above the $38.00 mark in early trade, crude oil prices staged a strong comeback and are now trading at shouting distance from the critical barrier at $40.00. The decision by the PBoC to cut both the benchmark rate and RRR has given extra oxygen to the already upbeat tone around oil.
The barrel of WTI has also found support in the recovery of European and US stock markets, reverting part of yesterday’s deep pullback.
Ahead in the week, tomorrow’s EIA weekly report on crude oil stockpiles is due, preceding Friday’s US oil rig count by driller Baker Hughes.
WTI levels to watch
At the moment WTI is advancing 3.32 % at $39.51 and a break above $46.94 (high Aug.3) would aim for $48.62 (high Jul.31) and finally $49.52 (high Jul.29). On the downside, the initial support aligns at $38.16 (low Aug.25) followed by $34.03 (monthly low February 2009).
WTI stronger post-PBoC
After hitting multi-year lows just above the $38.00 mark in early trade, crude oil prices staged a strong comeback and are now trading at shouting distance from the critical barrier at $40.00. The decision by the PBoC to cut both the benchmark rate and RRR has given extra oxygen to the already upbeat tone around oil.
The barrel of WTI has also found support in the recovery of European and US stock markets, reverting part of yesterday’s deep pullback.
Ahead in the week, tomorrow’s EIA weekly report on crude oil stockpiles is due, preceding Friday’s US oil rig count by driller Baker Hughes.
WTI levels to watch
At the moment WTI is advancing 3.32 % at $39.51 and a break above $46.94 (high Aug.3) would aim for $48.62 (high Jul.31) and finally $49.52 (high Jul.29). On the downside, the initial support aligns at $38.16 (low Aug.25) followed by $34.03 (monthly low February 2009).