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28 Jul 2015
WTI languishes near half-yearly lows
FXStreet (Mumbai) - WTI oil prices on NYMEX remains in the red during the European session, extending its downward trajectory for the fifth straight session, as stronger greenback, Chinese stock markets rout and persistent oversupplies worries continue to hurt investors’ sentiments.
WTI pressured on USD strength, China turmoil
Currently, WTI trades -0.88% lower at 47, unable to find a bottom so far. Another day of slump in Asian equities led by China stocks sell-off heightened worries about the health of the Chinese economy and the world's biggest energy consumer.
At the same time, worries of oversupply and an ongoing glut in the world energy markets haven't subsided, with Iran set to play a bigger role in oil markets once again. Asian processors, including big players in India, Taiwan and South Korea, have already signaled that they may buy more oil from Iran.
Markets are keenly waiting for the US Federal Reserve for guidance as the central bank will begin its policy meeting on Tuesday. It could result in an interest rate hike in September and strengthen the dollar. The US dollar index - a virtual measure of the greenback's power against its six major peers - stood 0.17% higher at 96.80.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 48.20 levels above which gains could be extended to 50 levels. Meanwhile, support is seen at 46.68 levels from here losses could be extended to 46 levels.
WTI pressured on USD strength, China turmoil
Currently, WTI trades -0.88% lower at 47, unable to find a bottom so far. Another day of slump in Asian equities led by China stocks sell-off heightened worries about the health of the Chinese economy and the world's biggest energy consumer.
At the same time, worries of oversupply and an ongoing glut in the world energy markets haven't subsided, with Iran set to play a bigger role in oil markets once again. Asian processors, including big players in India, Taiwan and South Korea, have already signaled that they may buy more oil from Iran.
Markets are keenly waiting for the US Federal Reserve for guidance as the central bank will begin its policy meeting on Tuesday. It could result in an interest rate hike in September and strengthen the dollar. The US dollar index - a virtual measure of the greenback's power against its six major peers - stood 0.17% higher at 96.80.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 48.20 levels above which gains could be extended to 50 levels. Meanwhile, support is seen at 46.68 levels from here losses could be extended to 46 levels.