After a brief test of session lows near $38.30, the barrel of West Texas Intermediate has gathered some traction and is now hovering over the $38.80 area.
WTI lower on USD rally, stockpiles
Crude stockpiles in record levels, as shown by reports earlier in the week, plus the continuation of the upside momentum around the greenback has prompted oil sellers to return to the markets and push the barrel of WTI lower, quickly extending the recent breach of the critical support at the $40.00 mark.
Crude oil prices are thus snapping a 5-week positive streak, advancing uninterruptedly since multi-year lows near the $26.00 handle in early February to Monday’s fresh YTD high just shy of the $42.00 mark per barrel.
WTI levels to consider
At the moment the barrel of WTI is losing 2.39% at $38.84 facing the immediate support at $37.32 (20-day sma) ahead of $35.85 (61.8% Fibo of $26.05-$41.90) and then $35.52 (100-day sma). On the other hand, a breakout of $41.48 (200-day sma) would open the door to 41.90 (2016 high Mar.22) and then $43.46 (high Nov.24 2015).
(Market News Provided by FXstreet)