WTI at 6-1/2 yr lows near $ 39, China rout – a big drag

FXStreet (Mumbai) – WTI oil on NYMEX remains submerged in the red and mires near the lowest levels over six years reached in early Asia on Monday after China fears re-ignited after the country’s stock markets dived near 9%, putting further pressure on oil.

WTI hammered once again

Currently, WTI trades -2.68% lower at 39.35, testing multi-year lows reached at $ 39.01 earlier today. Oil prices suffered heavily today after China markets once again collapsed, experiencing the lowest levels since the beginning of the crisis. China is a key oil consumer and a weakening economy may slow its demand for the commodity.

While, global supply fears are still holding the oil market down. The summer season saw a strong sell-off due to Iranian concerns, as the fourth largest global oil producer added to the supply pressure after the US changed its stance and decided to lift the sanctions.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 40.14 levels above which gains could be extended to 41.50 levels. Meanwhile, support is seen at 39 levels from here losses could be extended to 38.20 levels.

WTI oil on NYMEX remains submerged in the red and mires near the lowest levels over six years reached in early Asia on Monday after China fears re-ignited after the country’s stock markets dived near 9%, putting further pressure on oil.

(Market News Provided by FXstreet)