17 Dec 2015
WTI steadies above $ 35 amid oversupply worries
FXStreet (Mumbai) - The US oil stalled its downslide near Wednesday’s low and now treads water as rising crude reserves and a broadly stronger USD continue to dampen investors’ sentiments.
WTI: Locked-in a tight range
Currently, WTI trades muted at 35.50, having posted day’s high at 35.84 and day’s low at 35.36. Oil price remains subdued, consolidating previous heavy losses before the next leg lower, as the black gold remains under pressure amid intensifying supply glut scenario.
On Wednesay, oil prices fell sharply lower after the EIA weekly inventory report showed that the US crude oil inventories jumped by 4.801 million barrels in the week to December 11, following an over 3 million barrel fall. Markets had predicted a decline of about 500,000 for last week.
Moreover, a renewed USD rally after the Fed raised rates for the first time in more than nine years, also negatively weighed on the oil prices. A stronger dollar usually makes dollar-priced assets such as oil expensive for foreign buyers. While prospects of Iran’s oil exports flooding in the markets worsened the sentiment around oil markets.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 36.18 (1h 100-SMA) above which gains could be extended to 37.02 (1h 200-SMA). While to the downside, the immediate support is at 35.16 (Dec 11 low), below which the prices could drop to 34.53 (Dec 14 Low).
WTI: Locked-in a tight range
Currently, WTI trades muted at 35.50, having posted day’s high at 35.84 and day’s low at 35.36. Oil price remains subdued, consolidating previous heavy losses before the next leg lower, as the black gold remains under pressure amid intensifying supply glut scenario.
On Wednesay, oil prices fell sharply lower after the EIA weekly inventory report showed that the US crude oil inventories jumped by 4.801 million barrels in the week to December 11, following an over 3 million barrel fall. Markets had predicted a decline of about 500,000 for last week.
Moreover, a renewed USD rally after the Fed raised rates for the first time in more than nine years, also negatively weighed on the oil prices. A stronger dollar usually makes dollar-priced assets such as oil expensive for foreign buyers. While prospects of Iran’s oil exports flooding in the markets worsened the sentiment around oil markets.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 36.18 (1h 100-SMA) above which gains could be extended to 37.02 (1h 200-SMA). While to the downside, the immediate support is at 35.16 (Dec 11 low), below which the prices could drop to 34.53 (Dec 14 Low).