7 Aug 2015
WTI attempts a tepid recovery from 4-month lows
FXStreet (Mumbai) - WTI oil on NYMEX is seen posting moderate gains in the early European trades, trying to recover from the lowest levels since March and heads for a weekly loss, as global oversupply worries and a stronger US dollar continue to keep the oil prices undermined.
WTI recovers from $ 44.20
Currently, WTI trades 0.50 higher at 44.88, attempting a bounce to $ 45. Oil prices poses a weak recovery largely on profit-taking as traders unwind their positions ahead of the key US payrolls data which may have major impact on the greenback, thus influencing the dollar-back oil prices.
Oil prices came under renewed selling pressure and slumped to fresh multi-month lows on Thursday after Goldman Sachs said that oil prices will remain lower for a longer time and that prices may not rebound even in 2016.
"The rebalancing of supply and demand will likely prove to be far more difficult than what was previously priced into the market. The risks remain substantially skewed to the downside," analyst at Goldman Sachs noted.
Meanwhile, the US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.07% higher at 97.94.
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WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45.27 levels above which gains could be extended to 46.23 levels. Meanwhile, support is seen at 44.20 levels from here losses could be extended to 43 levels.
WTI recovers from $ 44.20
Currently, WTI trades 0.50 higher at 44.88, attempting a bounce to $ 45. Oil prices poses a weak recovery largely on profit-taking as traders unwind their positions ahead of the key US payrolls data which may have major impact on the greenback, thus influencing the dollar-back oil prices.
Oil prices came under renewed selling pressure and slumped to fresh multi-month lows on Thursday after Goldman Sachs said that oil prices will remain lower for a longer time and that prices may not rebound even in 2016.
"The rebalancing of supply and demand will likely prove to be far more difficult than what was previously priced into the market. The risks remain substantially skewed to the downside," analyst at Goldman Sachs noted.
Meanwhile, the US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.07% higher at 97.94.
Register to the live coverage and trade the NonFarm Payrolls with Bednarik, Pinkert and Elam. We are Forex!
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45.27 levels above which gains could be extended to 46.23 levels. Meanwhile, support is seen at 44.20 levels from here losses could be extended to 43 levels.