FXStreet (Edinburgh) – The barrel of the American benchmark for the light crude oil is posting decent gains on Thursday, hovering over daily highs beyond the $41.00 mark.
WTI supported by weaker dollar
The softness around the dollar is currently allowing a rebound in crude oil prices, prompting traders to shrug off Wednesday’s unexpected increase in crude stockpiles, according to the EIA weekly report.
However, concerns over the health of the Chinese economy plus the ongoing global supply glut are poised to persist as the main drivers for crude prices, limiting occasional bullish attempts.
WTI levels to watch
At the moment WTI is up 0.98% at $41.20 with the immediate resistance at $46.94 (high Aug.3) followed by $48.62 (high Jul.31) and finally $49.52 (high Jul.29). On the other hand, a breach of $40.21 (low Aug.20) would open the door to $34.03 (monthly low February 2009).
(Market News Provided by FXstreet)