WTI slumps to lows near $ 51.80 as DXY hits 3-month tops

Having extended its solid rebound in the Asian trades this Monday, oil futures on NYMEX (WTI) reversed entire gains and turned negative in the European trades, mainly in response to ongoing rally in the US dollar against its major peers.

The black gold edged higher earlier on the day, as the sentiment remained buoyed amid a drop in the US rigs count and looming supply disruption concerns in the Kurdish region of Iraq.

The prices also derived support from strengthening oil demand from Asia, with the Chinese oil demand hitting a January to September average of 8.5 million barrels per day. Meanwhile, oil demand from Indian also continues to remain firm.

Focus now remains on the US crude supplies data due out on Tuesday and Wednesday, while in the meantime, the commodity will continue to track the USD dynamics. At the time of writing, WTI trades marginally lower at $ 51.78, while Brent steadies at $ 57.51.

WTI Technical Levels

Higher-side levels: 52.43 (Sept 26 high), $53.21 (Apr 16 high), $ 54 (round number)

Lower-side levels: 51.64 (10-DMA), 51.50 (psychological levels), 51.02 (20-DMA)