FXStreet (Mumbai) – WTI oil futures on the Nymex snapped previous gains and fell back in red on Monday while no progress on Greece so far amid ongoing EU Summit and on nuclear deal over Iran expected to be struck this week.
WTI weighed by geo-political concerns
Currently, WTI trades 2% lower at fresh session lows of 51.66, retreating from 52.19 highs. Oil prices remain pressured as the prospect over reaching an Iran nuclear deal soon coupled with the ongoing crisis in Greece dampened investors’ sentiment.
The Iranian deal would lead to lifting Western economic sanctions against the country, with more Iranian oil due to worsen the current global supply glut and that is likely to hit prices.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, gains 0.10% to trade at 96.05. A stronger US currency makes them more expensive in other currencies and so less attractive for foreign investors.
Meanwhile, that forecasts for slower world oil demand next year is also weighing negatively on the oil market as traders now await fresh new from Greece and Iran for further momentum.
Technical Levels
WTI oil has an immediate resistance which stands at 52.96 levels above which gains could be extended to 53.54 levels. Meanwhile, support is seen at 51 levels from here losses could be extended to 50.58 levels.
(Market News Provided by FXstreet)