FXStreet (Mumbai) – WTI oil prices on NYMEX trades around a flat line and inched lower in the European session, consolidating sharp gains seen yesterday on a corrective rally after falling to fresh half-yearly lows earlier this week.
WTI wipes out gains, back in the red
Currently, WTI trades -0.29% lower at 47.84, failing an attempt to reclaim 48 levels. Oil prices came under renewed selling pressure after the USD bulls jumped back into the bids ahead of FOMC, driving the greenback higher across the board.
The US dollar index – a virtual measure of the greenback’s power against its six major peers – stood 0.10% higher at 96.85.
Worries of oversupply and an ongoing glut in the world energy markets haven’t subsided, the demand side of the market seems to be struggling with its recovery which continue to drag oil prices lower.
Investors will be keeping their eyes on Wednesday’s Energy Information Administration’s (EIA) US oil inventories change which may provide hints about the change in US demand for oil and gasoline.
Also, markets are keenly waiting for the US Federal Reserve for guidance as the central bank concludes its policy meeting on Wednesday. It could result in an interest rate hike in September and strengthen the dollar.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 48.20 levels above which gains could be extended to 50 levels. Meanwhile, support is seen at 46.68 levels from here losses could be extended to 46 levels.
(Market News Provided by FXstreet)