FXStreet (Edinburgh) – Crude oil prices remains on the defensive today, with the barrel of West Texas Intermediate managing to bounce off fresh 7-year lows near $35.70.
WTI lower on supply glut jitters
Unabated concerns over the ongoing supply glut remain the main driver of the bearish tone around crude oil prices for the time being. Earlier in the session, the barrel of WTI has dropped to fresh 7-year lows in the $37.70 area, unable to benefit from the softer tone around the US dollar and the recent drop in crude oil inventories, according to the EIA’s weekly report.
Fanning the flames, the OPEC announced it has increased its production to a fresh 3-year high during last month, adding to the grim scenario.
WTI levels to watch
At the moment the barrel of WTI is down 1.85 % % at $36.08 facing the next support at $36.51 (2015 low Dec.8) followed by $36.00 (monthly low Feb.2009) and then $32.40 (monthly low Dec.20008). On the other hand, a breakout of $40.01 (23.6% Fibo of $50.90-$36.64) would expose $43.67 (55-day sma) and finally $44.30 (downtrend from $50.92).
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