FXStreet (Mumbai) – WTI oil on NYMEX prolongs its downward trajectory in to a second day on Friday, as the global supply remains strong which continues to exert additional pressure on oil while the recent US dollar strength also drags the black gold lower.
WTI trades below $ 48
Currently, WTI trades -1.27% lower at 47.90, facing rejection at 48.50 levels. Oil prices remains pressured as global oversupply worries remain the major driver despite Organisation of Petroleum Exporting Countries (OPEC) efforts to calm the bearish rally on oil.
OPEC Secretary-General Abdullah al-Badri said on Thursday that he does not see prices “going to fall because demand is growing.”
Meanwhile, the recent drag on oil prices is also due to strengthening US dollar bolstered by increased rate-hike bets and the recent series of upbeat US macro data.
The US dollar index – a virtual measure of the greenback’s power against its six major peers – turned positive to trade at 97.64.
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)