FXStreet (Mumbai) – WTI oil on NYMEX reversed most of previous losses and rallied on Thursday mainly driven by a broadly weaker US dollar while falling US stockpiles also keeps the upward pressure on the black gold intact.
WTI holding on to $ 39 barrier
Currently, WTI trades over 3% higher at 39.76, in another run towards $ 40. Oil priced sharply rebounded on Thursday as the traders digest the latest inventories report released on Wednesday, cheering an unexpected drop in the stockpiles.
Crude inventories in the US fell by 5.45 million barrels in the week to August 21, the biggest one-week decline since early June, according to the fresh report from the Energy Information Administration. Markets had forecast a rise of about 2 million barrels.
Moreover, the strong rally witnessed today can be partly attributed to the weakening greenback against its major peers as traders booked profit after the recent strength. The US dollar index, the virtual measure for greenback’s relative strength now trades -0.13% lower at 95.18. Markets now await the US Q2 GDP report for further cues on the USD.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 40.14 levels above which gains could be extended to 41.50 levels. Meanwhile, support is seen at 39 levels from here losses could be extended to 38.20 levels.
(Market News Provided by FXstreet)