FXStreet (Edinburgh) – The barrel of the American benchmark for the light crude oil is prolonging its weekly pullback, threatening to break below the critical $50.00 support.
WTI supported by $50.00… so far
Crude oil prices are trading in multi-month lows around the $50.00 handle, as concerns over a global supply glut continue to take a toll on sentiment.
The recent Iran-West deal has also added potential for further downside in prices in the medium to longer term, as experts estimate that the Middle East oil-producer could need at least six month to return to production levels before sanctions were imposed.
In addition, the resurgence of the bid tone around the US dollar backed by positive data in the US economy and prospects of a Fed’s lift-off later in the year have also been collaborating with the pessimism around crude oil.
WTI levels to watch
At the moment WTI is down 0.81% at 50.50 with the next support at $50.14 (low Jul.17) followed by $49.47 (low Apr.6) and finally $48.11 (low Apr.2). On the other hand, a breakout of $56.78 (high Jul.3) would aim for $57.95 (high Jul.2) and then $58.98 (high Jul.1).
(Market News Provided by FXstreet)