FXStreet (Mumbai) – WTI oil on NYMEX traded mildly in the green in the European morning, as traders digest the latest stockpiles report as also the PBOC yuan devaluation for the third day in a row.
WTI: upside capped by stronger USD
Currently, WTI trades 0.35% higher at 43.25, recovering slightly from fresh six year lows reached at 42.69 on Tuesday. Oil prices hold moderate gains as less than expected drop in the crude inventories as reported by EIA data continues to weigh on the black gold.
The Energy Information Administration said on Wednesday that US crude inventories fell by about 1.7 million barrels for the week to August 7, less than the 2 million barrel drop expected by markets.
However, the gains in oil prices are expected to be limited as the greenback has rebounded across the board, with the US dollar gaining 0.16% to 96.44, making dollar-denominated commodities like oil expensive for holders of other currencies, and so reducing their attractiveness.
On Wednesday, the IEA lifted its projections for this year’s global oil demand by 200,00 million bpd to 1.6 million bpd, the fastest pace in five years, adding that demand would keep rising by 1.4 million bpd next year.
Markets now focus towards the upcoming US data for further impact on the USD moves, eventually affect the oil prices.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 44 levels above which gains could be extended to 45.35 levels. Meanwhile, support is seen at 42.69 levels from here losses could be extended to 42 levels.
(Market News Provided by FXstreet)