FXStreet (Mumbai) – WTI oil on NYMEX snapped its recent rally and dipped in Asia as a firmer greenback coupled with a bigger than expected jump in US crude reserves continue to weigh negatively on the prices.
WTI capped below $ 47
Currently, WTI trades nearly -0.45% lower at 46.04, erasing part of yesterday’s gains. US oil is seen posting moderate losses during Asian trades as markets digest the latest EIA crude inventory report amid broad based US dollar strength.
While the trading volume is likely to be muted as investors in China are off for the rest of this week due to public holidays.
Crude stockpiles in the US rose by almost 4.7 million barrels for the week to August 28, the biggest one-week rise since April 17, the EIA said in its report on Wednesday. Analysts had expected a rise of just 444,000 barrels.
Meanwhile, the US dollar index rose 0.10% to 95.95 on Thursday, waiting for key US NFP data to decide on a clear direction.
Moreover, oil prices also remain pressured on news that the US Congress was likely to vote to support the deal between Iran and six world’s powers over Tehran’s nuclear deal in exchange for lifting economic sanctions against the country.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 46.77 levels above which gains could be extended to 48.90 levels. Meanwhile, support is seen at 44.15 levels from here losses could be extended to 43.21 levels.
(Market News Provided by FXstreet)