FXStreet (Mumbai) – WTI oil on NYMEX extends its downward trajectory and fell to the lowest levels in six years below $ 42 in overnight trades, heavily weighed by an extremely oversupplied market.
WTI headed for another weekly drop
Currently, WTI trades -0.46% lower at 42, hovering close to fresh six year lows reached at 41.46. Oil prices extended Thursday’s huge losses and is on its way to book seventh straight weekly loss amid ongoing demand-supply imbalance.
Supply glut worries keep oil prices under pressure after the latest monthly report showed, OPEC pumped 31.5 million barrels per day (bpd) in July, which is a rise of about 101,000 bpd from a month earlier, hitting a three-year high.
In addition, Iraq, OPEC’s second-largest producer, said recently it aims to export near-record volumes of Basra crude in September, which would only add to the supply glut.
Markets now focus towards the upcoming US data for further impact on the USD moves, eventually affect the oil prices. Meanwhile, the US dollar index trades flat at 96.36 levels.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 43 levels above which gains could be extended to 44.24 levels. Meanwhile, support is seen at 41.46 levels from here losses could be extended to 39 levels.
(Market News Provided by FXstreet)