FXStreet (Edinburgh) – Choppy session for the barrel of West Texas Intermediate so far, now surrendering initial gains and returning to the $43.00 neighbourhood.
WTI trims gains on data
The generalized drop in the US dollar has been supporting a better tone around crude oil prices today, although a lower-than-expected drop in crude stockpiles has weighed on the daily gains. In fact, the EIA has reported that crude inventories decreased by almost 1.7 million barrels in the week ended on August 7 vs. an expected drop of 1.8 million barrels.
Furthermore, the International Energy Agency has revised up its forecasts for crude oil demand for the current year, although experts have already deemed the report as too optimistic, stating that the market will likely balance in Q4 2016.
WTI levels to watch
At the moment WTI is up 0.16% at $43.15 with the next support at $42.80 (low Aug.12) followed by $39.44 (monthly low March 2009) ahead of $37.12 (monthly low February 2009) and then $35.12 (monthly low December 2008). 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)