8 Jul 2015
WTI rebounds on weaker USD ahead of FOMC
FXStreet (Mumbai) - WTI oil futures on the Nymex halted its losing streak and reversed into the positive territory as the US dollar lost its strength ahead of the crucial Fed meeting minutes. However, the upside remains capped as worries over Greece and China persist.
WTI rises from $ 51.83
Currently, WTI trades 0.75% higher at 52.75, hovering near fresh session highs posted at 52.85. Oil prices reclaimed the green territory on Wednesday as traders sold-off the greenback while awaiting the latest Federal Reserve's (Fed) minutes. Still, gains were limited by the ongoing market slump in China and Greek jitters.
Analysts at ANZ noted. "Volatility in crude oil prices has increased dramatically in July, up by 40% in the last six trading days. Funds are contributing to the sell-off, with speculators reducing net-long position in WTI oil by 8% in the latest week."
Moreover, concerns over Greek and China outweighed the latest data saying US crude reserves fell by 960,000 barrels in the week to July 3, according to the American Petroleum Institute.
The government report, conducted by the Energy Information Administration, is likely to show a 750,000 barrel fall for last week.
Traders await weekly supply data from the Energy Information Administration (EIA) due tomorrow for further cues. The EIA report is likely to show a 750,000 barrel fall for last week.
Technical Levels
WTI oil has an immediate resistance which stands at 52.83 levels above which gains could be extended to 53.43 levels. Meanwhile, support is seen at 51 levels from here losses could be extended to 50.58 levels.
WTI rises from $ 51.83
Currently, WTI trades 0.75% higher at 52.75, hovering near fresh session highs posted at 52.85. Oil prices reclaimed the green territory on Wednesday as traders sold-off the greenback while awaiting the latest Federal Reserve's (Fed) minutes. Still, gains were limited by the ongoing market slump in China and Greek jitters.
Analysts at ANZ noted. "Volatility in crude oil prices has increased dramatically in July, up by 40% in the last six trading days. Funds are contributing to the sell-off, with speculators reducing net-long position in WTI oil by 8% in the latest week."
Moreover, concerns over Greek and China outweighed the latest data saying US crude reserves fell by 960,000 barrels in the week to July 3, according to the American Petroleum Institute.
The government report, conducted by the Energy Information Administration, is likely to show a 750,000 barrel fall for last week.
Traders await weekly supply data from the Energy Information Administration (EIA) due tomorrow for further cues. The EIA report is likely to show a 750,000 barrel fall for last week.
Technical Levels
WTI oil has an immediate resistance which stands at 52.83 levels above which gains could be extended to 53.43 levels. Meanwhile, support is seen at 51 levels from here losses could be extended to 50.58 levels.