FXStreet (Mumbai) – WTI oil futures on the Nymex slumped to fresh four-week lows in the European morning, largely on US dollar strength backed by Greek default fears which sparked a wave of sell-off in global equities.
WTI pressured on stronger USD
Currently, WTI trades -2.02% lower at 58.42, hovering near fresh four week lows at 58.31 handle. Oil prices witnessed sharp losses today as stocks sold off across Asia and Europe following Greece’s decision to hold a referendum on the nation’s bailout terms, significantly raising the risk of a default. Athens will introduce capital controls and keep its banks closed until July 6, taking the standoff to a dangerous new level.
The Greek headlines boosted the USD bulls amid safe-haven buying and this weighed on dollar-denominated commodities – such as crude oil – by making them more expensive to holders of other currencies.
Meanwhile, traders watched developments in the Iranian nuclear talks, with Western officials suggesting over the weekend a deal might be hard to achieve and negotiations might run past a June 30 deadline.
WTI Technical Levels
WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 60.63 levels. Meanwhile, support is seen at 58 levels from here losses could be extended to 57.21 levels.
(Market News Provided by FXstreet)