WTI languishes near 6-1/2 year lows, around $ 41

FXStreet (Mumbai) – WTI oil on NYMEX is seen posting moderate losses, hovering around 41 levels in the European morning, as traders are still coming to terms with the unexpected built-up seen in the US crude inventories as reflected by the EIA report while a slightly firmer greenback also adds to the bearish pressures.

WTI struck new 6-1/2 year lows at $ 40.81

Currently, WTI trades -0.52% lower at 41.05, struggling to extend beyond 41 barrier. Oil prices extend losses after plummeting to multi-year lows after the US crude stock piles report negatively impacted the markets.

The Energy Information Administration said that US stockpiles grew by 2.62 million barrels in the week to August 14, following three weeks of declines, and compared to a fall of 820,000 barrels expected by the market.

In addition, a slowing economy in China, a rising US dollar, global supply glut and prospects Iran would enter the oil market soon are the major downside risks for oil prices.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 41.50 levels above which gains could be extended to 43 levels. Meanwhile, support is seen at 40.80 levels from here losses could be extended to 39 levels.

WTI oil on NYMEX is seen posting moderate losses, hovering around 41 levels in the European morning, as traders are still coming to terms with the unexpected built-up seen in the US crude inventories as reflected by the EIA report while a slightly firmer greenback also adds to the bearish pressures.

(Market News Provided by FXstreet)