FXStreet (Mumbai) – WTI oil on NYMEX extended is weakness on Thursday, having booked heavy losses yesterday after rising stockpiles and lowered oil prices forecast continue to weigh on the investors’ sentiments.
WTI hovers around $ 44
Currently, WTI trades nearly 0.34% lower at 44, recovering form fresh two week lows struck at 43.39. US oil remains in the red zone, although halted its previous downslide, as focus now shifts towards the key US EIA stockpiles report.
Oil prices slumped on Wednesday after the Energy Information Administration(EIA) lowered on Wednesday its crude oil price forecasts for this and next year, hurting the sentiment on the commodity market.
The agency now expects WTI to average $49.23 per barrel this year, and $53.57 per barrel for next year, lower than previous estimates of $49.62 per barrel and $54.42 per barrel, respectively.
Meanwhile, markets digest the latest American Petroleum Institute’s (API) data on Wednesday that showed crude inventories in the US climbed by 2.1 million barrels in the week to September 4.
Later today, the weekly inventory report by the EIA, considered by traders as more important, is due with market betting on an increase of 1.2 million barrels.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45 levels above which gains could be extended to 45.90 levels. Meanwhile, support is seen 41.78 levels from here losses could be extended to 40 levels.
(Market News Provided by FXstreet)