FXStreet (Mumbai) – WTI oil futures on the Nymex bounced-off fresh four month lows reached on Wednesday and jolted higher today as the stock market plunge in China has been halted for now, but traders are cautious given the Greece crisis and another rise in crude reserves.
WTI bounces-off 4-month lows
Currently, WTI trades -0.98% lower at 51.83, fresh session lows. Oil rallied as the US dollar paused from its rally, with traders digesting the latest stockpiles report and the situation in Greece and China.
US crude oil inventories rose by 384,000 barrels in the week to July 3, increasing for the second week in a row, while analysts had expected a drop of 750,000 barrels, the weekly data by the Energy Information Administration (EIA) said on Wednesday.
Meanwhile, Iran and six world powers are still negotiating the details of the country’s nuclear program that will lift economic sanctions against Tehran and free more oil into the already oversupplied market. The deal is expected to be made later this week.
Technical Levels
WTI oil has an immediate resistance which stands at 53 levels above which gains could be extended to 53.43 levels. Meanwhile, support is seen at 51 levels from here losses could be extended to 50.58 levels.
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