FXStreet (Mumbai) – WTI oil futures on the Nymex prolongs it bearish momentum in the early trades, sliding for the sixth day in a row as investors moved away from riskier-assets such as oil as worries over Greece and China continue to hamper market sentiment.
WTI drops from $ 52.83
Currently, WTI trades -0.98% lower at 51.83, fresh session lows. Oil prices extend sell-off as traders remain wary, digesting the latest developments in Greece amid the ongoing market slump in China.
Analysts at ANZ noted. “Volatility in crude oil prices has increased dramatically in July, up by 40% in the last six trading days. Funds are contributing to the sell-off, with speculators reducing net-long position in WTI oil by 8% in the latest week.”
Moreover, concerns over Greek and China outweighed the latest data saying US crude reserves fell by 960,000 barrels in the week to July 3, according to the American Petroleum Institute.
The government report, conducted by the Energy Information Administration, is likely to show a 750,000 barrel fall for last week.
Traders await weekly supply data from the Energy Information Administration (EIA) due tomorrow for further cues. The EIA report is likely to show a 750,000 barrel fall for last week.
Technical Levels
WTI oil has an immediate resistance which stands at 52.83 levels above which gains could be extended to 53.43 levels. Meanwhile, support is seen at 51 levels from here losses could be extended to 50.58 levels.
(Market News Provided by FXstreet)