7 Sep 2015
WTI extends the drop to $ 45
FXStreet (Mumbai) - WTI oil on NYMEX traded lower on Monday, extending its bearish momentum from Friday last week as poor fundamental outlook for oil and rising US dollar continue to dampen investors’ sentiment.
WTI rejected at $ 45.92
Currently, WTI trades nearly -0.72% lower at 45.72, extending the weakness from near 47 levels. US oil edged lower this session amid projections that prices will remain low while supply is expected to remain strong next year. While the trading volume may be thin on Monday due to the celebration of the Labor Day holiday in the US.
Analysts at Rabobank noted, "We expect oil to remain low as the fundamentally driven path of least resistance and a move into the 30s cannot be ruled out but price action will be susceptible to these sharp, short-lived moves higher."
Meanwhile, the US dollar index grew 0.07% to 96.30 as traders continued to digest the latest US labor market report which appears to have raised the prospects for the Fed rate hike next week. The central bank is due to meet on September 16-17
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 47 levels above which gains could be extended to 48.90 levels. Meanwhile, support is seen at 44.15 levels from here losses could be extended to 43.21 levels.
WTI rejected at $ 45.92
Currently, WTI trades nearly -0.72% lower at 45.72, extending the weakness from near 47 levels. US oil edged lower this session amid projections that prices will remain low while supply is expected to remain strong next year. While the trading volume may be thin on Monday due to the celebration of the Labor Day holiday in the US.
Analysts at Rabobank noted, "We expect oil to remain low as the fundamentally driven path of least resistance and a move into the 30s cannot be ruled out but price action will be susceptible to these sharp, short-lived moves higher."
Meanwhile, the US dollar index grew 0.07% to 96.30 as traders continued to digest the latest US labor market report which appears to have raised the prospects for the Fed rate hike next week. The central bank is due to meet on September 16-17
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 47 levels above which gains could be extended to 48.90 levels. Meanwhile, support is seen at 44.15 levels from here losses could be extended to 43.21 levels.