FXStreet (Mumbai) – WTI oil futures on the Nymex halted its downslide and bounced-back in the Asian session, extending a minor recovery from three-month lows reached in the previous session, as traders continue to monitor the situation in Greece and Vienna, where Iran talks lingers.
WTI supported at $ 52
Currently, WTI trades 0.81% higher at 52.95, with the recovery capped at 53.12 levels. Oil prices edged higher in Asia largely as traders took to locking-in gains after the recent 4% slump.
Oil prices on both sides of the Atlantic dropped sharply tracking losses in metals while Chinese stocks rout also dampened investors sentiment.
While, the outcome of Greece’s referendum over bailout terms hit the euro and boosted the US dollar, which weighed negatively on oil prices as the US currency makes them more expensive for foreign traders. On Tuesday, the US dollar index was up 0.18% at 96.60.
Meanwhile, talks over Iran’s nuclear program continue in Vienna, with market participants worried the country may flood the already oversupplied market with million of barrels of new oil if Western sanctions are lifted.
Traders also await weekly supply data from the American Petroleum Institute (API) later in the day and the Energy Information Administration (EIA) due tomorrow for further cues.
Technical Levels
WTI oil has an immediate resistance which stands at 53.12 levels above which gains could be extended to 54 levels. Meanwhile, support is seen at 52.41 levels from here losses could be extended to 51.78 levels.
(Market News Provided by FXstreet)