FXStreet (Edinburgh) – Not a good start of the year for crude oil prices, which are slipping more than 4% today to the $34.00 area per barrel.
WTI weaker despite falling inventories
The barrel of West Texas Intermediate is extending its weekly decline today against a backdrop of a solid demand for the greenback and the omnipresent concerns over the supply glut.
Furthermore, crude oil inventories have decreased by nearly 5.1 million barrels during last week according to the EIA report, although the significant build-up of gasoline inventories has eclipsed the positive news for the black gold.
Crude oil prices will remain vulnerable via the dollar’s exposure, as the FOMC will release its minutes later in the NA session.
WTI levels to watch
At the moment the barrel of WTI is losing 4.42% at $34.38 and, a breakdown of $33.98 (2015 low Dec.21) would expose $32.40 (monthly low Dec.2008). On the other hand, the next resistance aligns at $40.46 (50% Fibo of $50.90-$33.98) ahead of $40.72 (55-day sma) and then $41.84 (downtrend from $50.92).
(Market News Provided by FXstreet)