FXStreet (Mumbai) – WTI oil rebounded from two-month lows on Wednesday, snapping seven consecutive sessions of losses, as markets resorted to profit-taking after the recent weakness ahead of the weekly stockpiles report and the FOMC outcome.
WTI regains $ 43
Currently, WTI rises 0.72% to 43.50, recovering almost a dollar from the lowest levels seen in two-months at 42.58. Oil prices edge higher during the European session on the back of correction, as oil traders preferred to liquidate their short positions ahead of the key risk events due later today.
However, the recovery is expected to remain short-lived as the persisting oversupply worries continue to weigh on the black gold. Crude inventories in the US rose by 4.1 million barrels to 477.1 million barrels in the week to October 23, the API reported on Tuesday, compared to estimates of about a 3 million barrels rise.
Looking ahead, traders will keep an eye on the EIA crude stockpiles report, which is expected to show increase in crude reserves for the fifth straight week. While Fed decision and China’s policy meeting will be also closely eyed.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 43.91 (Oct 27 High) levels above which gains could be extended to 44.56 (daily R2). While to the downside, the immediate support is at 42.58 (Oct 27 Low), below which the prices could drop to 41.78 (Aug 28 Low).
(Market News Provided by FXstreet)