FXStreet (Edinburgh) – Crude oil prices are attempting to regain the smile today following yesterday’s drop, currently hovering over the $36.75/80 band per barrel.
WTI advances despite strong USD, geopolitical jitters
The barrel of the West Texas Intermediate is posting meagre gains in spite of the renewed demand for the US dollar and its impact on the USD-denominated assets.
In addition, geopolitical concerns seem far from abated between Iran and Saudi Arabia, while another conflict has emerged in Lybia after the attacks on two oil terminals. Despite the effervescence of the situation, there is still no military action in any front, which could (still) leave the oil supply intact for the time being.
Ahead in the week, the EIA’s weekly report on crude inventories, the US oil rig count measured by driller Baker Hughes and the FOMC minutes and US Non-farm Payrolls appear as the main catalysts for the direction of oil prices in the near term.
WTI levels to watch
At the moment the barrel of WTI is up 0.23 % % at $36.58 facing the next resistance at $40.46 (50% Fibo of $50.90-$33.98) ahead of $40.72 (55-day sma) and then $41.84 (downtrend from $50.92). On the flip side, a breakdown of $33.98 (2015 low Dec.21) would expose $32.40 (monthly low Dec.2008).
(Market News Provided by FXstreet)