WTI trims losses, hovers around $ 55

FXStreet (Mumbai) – WTI oil futures on the Nymex halted its downslide and recovered from close to three month lows during early European trades as the US dollar gave back most gains from Asia following the Greek referendum results which weighed heavily on the black gold.

WTI recovers from 54.71

Currently, WTI trades -0.77% lower at 55.11, moving away from fresh session lows posted at 54.71. Oil prices remains pressured as the outcome from the Greek referendum boosted the US dollar, making the commodity less attractive. The US dollar index rose 0.14% to 96.51 on Monday, making dollar-denominated assets more expensive in other currencies.

While oil prices also remain in red amid ongoing oversupply worries. On Thursday, oilfield service company Baker Hughes added to further worries by saying the number of US rigs rose by 12 to 640, the first increase since mid-December.

Meanwhile, in Vienna, the deadline for reaching a deal on Iran’s nuclear program is looming (July 7), with Iranian officials saying they want to double crude exports soon after Western sanctions against the country are lifted.

Technical Levels

WTI oil has an immediate resistance which stands at 56 levels above which gains could be extended to 56.78 levels. Meanwhile, support is seen at 54.55 levels from here losses could be extended to 53 levels.

WTI oil futures on the Nymex halted its downslide and recovered from close to three month lows during early European trades as the US dollar gave back most gains from Asia following the Greek referendum results which weighed heavily on the black gold.

(Market News Provided by FXstreet)