12 Aug 2015
WTI poses modest recovery as USD weakens
FXStreet (Mumbai) - WTI oil on NYMEX took a breather and is seen posting mild gains in the European session, after the greenback lost its strength and boosted appetite for dollar-denominated assets. While markets await fresh EIA inventory report due later today.
WTI: downside bias persists
Currently, WTI trades 0.35% higher at 43.25, recovering slightly from fresh six year lows reached at 42.69 on Tuesday. Oil prices edged slightly higher largely on the back of weaker greenback while upbeat IEA latest report citing that global oil demand is expected to rise at a fastest pace in 5 years also lifted the sentiment around the black gold.
IEA report noted, “Global oil demand in 2015 is expected to grow by 1.6 mb/d, up 0.2 mb/d from our previous report and the fastest pace in five years, as economic growth solidifies and consumers respond to lower oil prices. Persistent macro-economic strength supports above-trend growth of 1.4 mb/d in 2016.”
Moreover, the gains came after the greenback failed to keep its strength, with the US dollar falling 0.64% to 96.62, making dollar-denominated commodities like oil cheaper for holders of other currencies, and so raising their attractiveness.
Later in the day, the attention will shift to the weekly report on US stockpiles, released by the Energy Information Administration (EIA), to be published later in the US session with markets predicting a fall of about 2 million barrels for last week.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 44 levels above which gains could be extended to 45.35 levels. Meanwhile, support is seen at 42.69 levels from here losses could be extended to 42 levels.
WTI: downside bias persists
Currently, WTI trades 0.35% higher at 43.25, recovering slightly from fresh six year lows reached at 42.69 on Tuesday. Oil prices edged slightly higher largely on the back of weaker greenback while upbeat IEA latest report citing that global oil demand is expected to rise at a fastest pace in 5 years also lifted the sentiment around the black gold.
IEA report noted, “Global oil demand in 2015 is expected to grow by 1.6 mb/d, up 0.2 mb/d from our previous report and the fastest pace in five years, as economic growth solidifies and consumers respond to lower oil prices. Persistent macro-economic strength supports above-trend growth of 1.4 mb/d in 2016.”
Moreover, the gains came after the greenback failed to keep its strength, with the US dollar falling 0.64% to 96.62, making dollar-denominated commodities like oil cheaper for holders of other currencies, and so raising their attractiveness.
Later in the day, the attention will shift to the weekly report on US stockpiles, released by the Energy Information Administration (EIA), to be published later in the US session with markets predicting a fall of about 2 million barrels for last week.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 44 levels above which gains could be extended to 45.35 levels. Meanwhile, support is seen at 42.69 levels from here losses could be extended to 42 levels.