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5 Nov 2015
WTI drops to lows around $45.70
FXStreet (Edinburgh) - The barrel of the West Texas Intermediate lost its initial traction and is now dropping to session lows in sub-$46.00 levels.
WTI down on stronger USD
Crude oil prices have reverted their positive start, sparking a leg lower after reaching session highs near $46.60.
The persistent strong buying interest around the US dollar continues to hurt the USD-denominated assets, prompting the WTI to retreat for the second consecutive session and extend the pullback from the recent recovery to the mid-$48.00s (Tuesday).
In addition, crude oil inventories continues to build up amidst unabated concerns over the ongoing supply glut and prospects of stagnant demand in the next years.
WTI levels to watch
At the moment the barrel of West Texas Intermediate is losing 1.53% at $45.61 with the next support at $41.78 (low Aug.28) ahead of $40.85 (23.6% Fibo of $37.75-$50.92) and finally $37.75 (2015 low Aug.24). On the other hand, a surpass of $48.10 (downtrend from $50.92) would aim for $48.36 (high Nov.3) and then $50.73 (200-day sma).
WTI down on stronger USD
Crude oil prices have reverted their positive start, sparking a leg lower after reaching session highs near $46.60.
The persistent strong buying interest around the US dollar continues to hurt the USD-denominated assets, prompting the WTI to retreat for the second consecutive session and extend the pullback from the recent recovery to the mid-$48.00s (Tuesday).
In addition, crude oil inventories continues to build up amidst unabated concerns over the ongoing supply glut and prospects of stagnant demand in the next years.
WTI levels to watch
At the moment the barrel of West Texas Intermediate is losing 1.53% at $45.61 with the next support at $41.78 (low Aug.28) ahead of $40.85 (23.6% Fibo of $37.75-$50.92) and finally $37.75 (2015 low Aug.24). On the other hand, a surpass of $48.10 (downtrend from $50.92) would aim for $48.36 (high Nov.3) and then $50.73 (200-day sma).