25 Aug 2015
WTI rebounds from multi-yr lows, attempting $ 39
FXStreet (Mumbai) - WTI oil on NYMEX appears to stage a solid comeback from more than 6 year lows reached on Monday after massive equities sell-off in China spooked markets and hammered the entire commodities space lower.
WTI fighting hard to regain lost footing
Currently, WTI trades 1.60% higher at 38.84, heading towards 39 barrier. Oil prices halted its downward spiral and breathed a sigh of relief in Asia as markets viewed the recent drop as overdone and also ignored the persistent losses in Chinese markets.
Oil prices tanked to fresh six-and-a-half-year lows on Monday, as investors were forced to confront the harsh reality of China's crumbling stock market and the implication for global crude demand from the slowdown of one of the world's main economic powerhouses.
While, global supply fears are still holding the oil market down. The summer season saw a strong sell-off due to Iranian concerns, as the fourth largest global oil producer added to the supply pressure after the US changed its stance and decided to lift the sanctions.
Markets now await API stockpiles report due for release later today while Wednesday’s weekly inventories report by EIA will also be closely watched.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 40.14 levels above which gains could be extended to 41.50 levels. Meanwhile, support is seen at 39 levels from here losses could be extended to 38.20 levels.
WTI fighting hard to regain lost footing
Currently, WTI trades 1.60% higher at 38.84, heading towards 39 barrier. Oil prices halted its downward spiral and breathed a sigh of relief in Asia as markets viewed the recent drop as overdone and also ignored the persistent losses in Chinese markets.
Oil prices tanked to fresh six-and-a-half-year lows on Monday, as investors were forced to confront the harsh reality of China's crumbling stock market and the implication for global crude demand from the slowdown of one of the world's main economic powerhouses.
While, global supply fears are still holding the oil market down. The summer season saw a strong sell-off due to Iranian concerns, as the fourth largest global oil producer added to the supply pressure after the US changed its stance and decided to lift the sanctions.
Markets now await API stockpiles report due for release later today while Wednesday’s weekly inventories report by EIA will also be closely watched.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 40.14 levels above which gains could be extended to 41.50 levels. Meanwhile, support is seen at 39 levels from here losses could be extended to 38.20 levels.