The US oil keeps
its recovery mode from almost seven-year lows on Wednesday and holds
above $ 38 as markets remain wary ahead of fresh weekly supply reports
from the EIA due later today.
WTI: Bears take a breather from the recent rout
Currently, WTI trades modestly flat at 38.14, extending the recovery from 36.64, the lowest levels hit since Fed 2009. Oil prices witnessed wild swings on Tuesday amid lack of fresh fundamentals triggers while traders remained worries over the persisting supply glut scenario with the OPEC’s decision to keep the production levels unchanged, further adding to the pain.
However, stronger Chinese import figures, despite the economic weakness boosted the sentiment around the black gold somewhat and helped prices to recover from multi-year lows. While a bigger than expected drop in crude supplies as reflected by the API report also cushioned the downside in oil. The API reported that crude supplies fell by 1.9 million barrels for the week ended Dec. 4, against expectations of a decline of 1.2 million barrels.
Meanwhile, markets remain cautious ahead of the crucial China’s CPI figures and EIA crude reserves report which may provide further momentum on the prices.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 38.58 (Dec 8 high) above which gains could be extended to 39.47 (hourly 100-SMA). While to the downside, the immediate support is at 37.50 (Dec 7 low), below which the prices could drop to 36.64 (Dec 8 low).
WTI: Bears take a breather from the recent rout
Currently, WTI trades modestly flat at 38.14, extending the recovery from 36.64, the lowest levels hit since Fed 2009. Oil prices witnessed wild swings on Tuesday amid lack of fresh fundamentals triggers while traders remained worries over the persisting supply glut scenario with the OPEC’s decision to keep the production levels unchanged, further adding to the pain.
However, stronger Chinese import figures, despite the economic weakness boosted the sentiment around the black gold somewhat and helped prices to recover from multi-year lows. While a bigger than expected drop in crude supplies as reflected by the API report also cushioned the downside in oil. The API reported that crude supplies fell by 1.9 million barrels for the week ended Dec. 4, against expectations of a decline of 1.2 million barrels.
Meanwhile, markets remain cautious ahead of the crucial China’s CPI figures and EIA crude reserves report which may provide further momentum on the prices.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 38.58 (Dec 8 high) above which gains could be extended to 39.47 (hourly 100-SMA). While to the downside, the immediate support is at 37.50 (Dec 7 low), below which the prices could drop to 36.64 (Dec 8 low).
