FXStreet (Mumbai) – WTI oil prices on NYMEX extends its bearish tone for the fourth straight session in the European morning, languishing near six-month lows, as oversupply concerns from the United States and Iraq, and the Iranian deal continues to keep oil prices pressured.
WTI lower despite USD weakness
Currently, WTI trades -0.30% lower at 48, consolidating previous losses. Reports of increasing oil supplies from the US and Iraq continued to drag oil prices lower, adding to the recent Iran deal led oversupply concerns.
Supplies from Iraq’s southern oilfields are expected to hit a new monthly record, having produced 3 million barrels per day so far this month.
Moreover, reports from the US Commodity Futures Trading Commission showed on Friday that speculators cut their long bets on US crude futures and options to the lowest level in five years last week, further adding to the bearish sentiment around crude prices.
Markets are keenly waiting for the US Federal Reserve for guidance as the central bank will begin its policy meeting on Tuesday. It could result in an interest rate hike in September and strengthen the dollar. The US dollar index – a virtual measure of the greenback’s power against its six major peers – stood -0.74% lower at 96.63.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 50 levels above which gains could be extended to 51.58 levels. Meanwhile, support is seen at 47.72 levels from here losses could be extended to 46.50 levels.
(Market News Provided by FXstreet)