FXStreet (Edinburgh) – Crude oil prices are extending their downbeat momentum on Monday, currently hovering over the $40.20/25 band per barrel.
WTI lower on USD strength
Renewed geopolitical jitters stemming from Syria have given fresh oxygen to the barrel of WTI in early trade. However, increasing risk aversion following the Paris attacks has been fuelling the demand for the greenback, prompting the barrel of West Texas Intermediate to not only fade the initial spike, but also to return to the negative ground and challenge the psychological $40.00 handle.
While the situation in the Middle East might give crude oil some sporadic bouts of upside momentum, gains appear largely capped by the unabated supply glut, which continues to undermine sentiment.
WTI levels to watch
At the moment the barrel of WTI is losing 1.33% at $40.20 with the next support at $40.00 (psychological level) and then $37.75 (2015 low Aug.24). On the other hand, a surpass of $42.77 (38.2% Fibo of $37.75-%50.90) would expose $45.38 (55-day sma) and finally $46.93 (downtrend from $50.92).
(Market News Provided by FXstreet)