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11 May 2015
WTI muted below $60, stronger US weighs
FXStreet (Mumbai) - WTI oil futures on the Nymex trades slightly lower today, little affected by the latest rate cut in China, as USD moves continues to drive oil prices.
WTI steadies on 59 handle
Currently, WTI trades -0.13% lower at 59.31, in a very narrow range. Crude remains in red this session on a broadly stronger greenback backed by upbeat US fundamentals, which continue to hurt oil prices. Rising US dollar makes dollar-denominated commodities like oil more expensive for holders of other currencies.
Moreover, reports from Oilfield-services Company Baker Hughes that the number of US rig counts declined by 11 to 668 in the week to May 8, the fewest since September 2010 also failed to lift oil prices.
Also, the latest move by China failed to support investors’ sentiments and had no impact on crude prices. China is the world’s second largest oil consumer.
Meanwhile, markets now turn their attention towards the labour market condition figures from the US which may provide fresh cues on US dollar moves, eventually impacting oil prices.
Technical Levels
WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 61.50 levels. Meanwhile, support is seen at 58 levels from here losses could be extended to 56 levels.
WTI steadies on 59 handle
Currently, WTI trades -0.13% lower at 59.31, in a very narrow range. Crude remains in red this session on a broadly stronger greenback backed by upbeat US fundamentals, which continue to hurt oil prices. Rising US dollar makes dollar-denominated commodities like oil more expensive for holders of other currencies.
Moreover, reports from Oilfield-services Company Baker Hughes that the number of US rig counts declined by 11 to 668 in the week to May 8, the fewest since September 2010 also failed to lift oil prices.
Also, the latest move by China failed to support investors’ sentiments and had no impact on crude prices. China is the world’s second largest oil consumer.
Meanwhile, markets now turn their attention towards the labour market condition figures from the US which may provide fresh cues on US dollar moves, eventually impacting oil prices.
Technical Levels
WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 61.50 levels. Meanwhile, support is seen at 58 levels from here losses could be extended to 56 levels.