FXStreet (Edinburgh) – The barrel of the American benchmark for the light crude oil has dropped to fresh multi-year lows in the vicinity of the $43.00 mark on Tuesday.
WTI weaker on PBoC decision
Crude oil prices area trading in levels last seen in March 2009 after the PBoC has decided to devaluate the Yuan in early trade, giving extra legs to the US dollar and fuelling fears of a slowdown in the Chinese economy.
In the same direction, crude oil continues to suffer the ongoing supply glut, exacerbated today after the OPEC has announced that the cartel’s production rose to a 3-year high during July. Adding fuel to the fire, Iranian oil officials have argued that the Middle-East oil producer intends to start pumping the black gold into the markets as soon as sanctions are lifted.
WTI levels to watch
At the moment WTI is losing 4.20% at $43.08 with the next support at $39.44 (monthly low March 2009) ahead of $37.12 (monthly low February 2009) and then $35.12 (monthly low December 2008). On the flip side, a break above $46.94 (high Aug.3) would aim for $48.62 (high Jul.31) and finally $49.52 (high Jul.29).
(Market News Provided by FXstreet)