FXStreet (Mumbai) – WTI oil on NYMEX traded extremely choppy on Wednesday, swinging between gains and losses and now finally trading deep in the red as markets eagerly await the API stockpiles report.
WTI trades below $ 46
Currently, WTI trades nearly -1.06% lower at 45.46, unable to extend beyond 46.30 levels. US oil erased early gains and fell back in the negative territory as investors’ sentiment was badly hit by reports that Russia is expected to increase its oil production by 1% in 2015.
Adding to the downside in oil, the US dollar index climbed 0.53% to 96.35. Thus the commodity lost its attractiveness for foreign investors.
Looking ahead, the American Petroleum Institute (API) will report its data later in the day, with markets predicting a rise of about 200,000 barrels for the week to September 4.
Usually, the group reports its data on Tuesday, but the release was postponed due to Monday’s Labor Day holiday. As a result, the more important figures from the Energy Information Administration (EIA) will be delayed till Thursday.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 47.23 levels above which gains could be extended to 48.42 levels. Meanwhile, support is seen at 43.21 levels from here losses could be extended to 41.78 levels.
(Market News Provided by FXstreet)