FXStreet (Edinburgh) – The barrel of the American benchmark for the light crude oil is back to the positive territory on Friday, currently meandering around the mid-$42.00s.
WTI bounces off multi-year lows
After reaching the area of $41.30, levels last seen in March 2009, crude oil prices have regained the $42.00 handle, although gains appear to be capped around the $43.00 mark so far. According to market experts, downside pressure on prices is far from over, leaving the door open for a test of the psychological handle at $40.00.
In the meantime, jitters on the ongoing supply glut, a potential slowdown in the Chinese economy, increasing output from OPEC members and the renewed buying interest around the US dollar remain the main factors sustaining the decline in prices, which remain hovering over multi-year lows.
WTI levels to watch
At the moment WTI is up 0.85% at $42.59 and a break above $46.94 (high Aug.3) would aim for $48.62 (high Jul.31) and finally $49.52 (high Jul.29). On the flip side, the immediate support lies at $42.35 (2015 low Aug.14) followed by $40.07 (monthly low March 2009) ahead of $34.03 (monthly low February 2009).
(Market News Provided by FXstreet)