FXStreet (Mumbai) – WTI oil on NYMEX resumed its bearish tone on Tuesday, reversing a brief spike seen on Monday, pressured by broadly stronger greenback following PBOC yuan fix while markets now await US stock piles reports due later this week.
WTI keeps losses below $ 45
Currently, WTI trades -0.88% lower at 44.56, returning to its recent downside momentum. Oil prices slipped back in the red as investors are trading cautiously ahead of the fresh inventory report.
Moreover, a rising US dollar versus its major competitors on the back of renewed risk-off moods induced by China’s yuan devaluation has also put the brakes on the commodity. China has been in the market spotlight especially as it is a huge oil consumer. Meanwhile, the US dollar index, the virtual gauge of greenback’s relative strength, now trades 0.31% higher at 97.53.
Later in the day, the attention will shift to the weekly report on US stockpiles, released by the American Petroleum Institute (API). The more important report, conducted by the Energy Information Administration (EIA), is due to be published on Wednesday, with markets predicting a fall of about 2 million barrels for last week.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45.27 levels above which gains could be extended to 46.23 levels. Meanwhile, support is seen at 44 levels from here losses could be extended to 43.35 levels.
(Market News Provided by FXstreet)