FXStreet (Mumbai) – The oil futures on Comex dropped sharply this Friday, extending the slide from the previous session on the back of rising crude reserves and China demand concerns.
WTI tests $ 42
Currently, WTI drops -1.90% to 42.23, extending sharp declines from two-week highs near $43.50. Oil prices remain relentlessly offered as the renewed concerns over China’s economic slowdown following the release of poor Chinese industrial profits data (-4.6% y/y), added to the persisting oversupply worries.
On Wednesday, the EIA report that crude stocks in the US climbed by 961,000 barrels in the week to November 20, against a 1 million barrel gain expected. Total reserves reached 488.2 million barrels, the highest since late April when stockpiles reached record highs.
In the day ahead, light trading is expected following Thanksgiving Day in the US while the now focus shifts toward the OPEC Dec 4 meeting for fresh cues on the black gold.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 43.46 (Nov 24 high) above which gains could be extended to 44 (round number). While to the downside, the immediate support is at 41.54 (Nov 12 Low), below which the prices could drop to 40.41 (Nov 23 Low).
(Market News Provided by FXstreet)