FXStreet (Edinburgh) – The barrel of the West Texas Intermediate remains on the back footing this week, currently dropping to test the vicinity of the $44.00 handle.
WTI lower on Payrolls, China
Demand for crude oil remains subdued, as the barrel of WTI is on its way to clinch the worst week since March, challenging the boundaries of $44.00 after auspicious results from the US labour market.
Fanning the flames, the potential slowdown of the Chinese economy coupled with the omnipresent worries on the ongoing supply glut continues to hurt the sentiment around crude oil, capping any bullish attempt.
Data wise, driller Baker Hughes has informed that US oil rigs in use have increased by 6 to 670 during last week. The data add to Wednesday’s EIA report, showing crude stockpiles down by 4.4 million barrels.
WTI levels to watch
At the moment WTI is down 1.41% at $44.03 with the next support at $43.94 (2015 low Aug.7) followed by $43.83 (monthly low Feb.2009) and then $33.55 (monthly low Jan.2009). On the flip side, a break above $46.94 (high Aug.3) would aim for $48.62 (high Jul.31) and finally $49.52 (high Jul.29).
(Market News Provided by FXstreet)