FXStreet (Mumbai) – The US oil manages to recover lost ground somewhat and edges higher on Tuesday, as sudden fall in temperatures in the US and Europe provides some respite to the oil markets.
WTI recovers from $ 36.60
Currently, WTI trades 0.48% higher near fresh session highs of 37.03, having found solid support near 36.60 region. Oil prices recover a part of yesterday’s steep losses and remains lifted on the back of onset of freezing temperatures in Europe and North America following an unusually warm start to winter, which is likely to spur heating fuel demand.
However, the gains in the black gold remain capped as the underlying supply glut and demand worries continue to linger in the investors’ mind. According to JBC Energy report, demand growth in Europe turned negative for the first time in ten months in October. This represents a loss of 170,000 barrels per day (bpd) y/y while the report also highlighted the slowing demand from the world’s second largest oil consumer, China.
Meanwhile, all eyes remain on the US API stockpiles report ahead of the US economic data due for release later today, which may have some impact on the USD moves and eventually on oil.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 38 (round number) above which gains could be extended to 38.58 (Dec 8 High). While to the downside, the immediate support is at 36.60 (Dec 28 Low), below which the prices could drop to 36.28 (Dec 23 Low).
(Market News Provided by FXstreet)