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2 Sep 2015
China fears, surging stockpiles keep hammering WTI
FXStreet (Mumbai) - WTI oil on NYMEX continues to get hammered on Wednesday, extending the sharp drop seen in the previous session, as oil traders weigh the latest stockpiles report from API while persisting China worries add to the ongoing weakness.
WTI challenges $ 44
Currently, WTI trades nearly -2.50% lower at 44.34, erasing entire Monday’s gains. US crude stocks built up over the past week as reflected by the latest API and persisting worries over China dragged oil prices lower.
The American Petroleum Institute (API) said late on Tuesday that US crude stockpiles grew by 7.6 million barrels in the week to August 28. Markets had forecast a rise of just 32,000 barrels.
The more important figures by the EIA will be published later in the day, with estimates pointing to an increase of 700,000 barrels.
Further adding to negative sentiment, the US dollar index rose 0.28% to 95.66 on Wednesday, waiting for more US data to decide on a clear direction.
The US ADP employment report, due to be released later in the day, is expected to be the major market mover ahead of crucial jobs report on Friday.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45 levels above which gains could be extended to 46.80 levels. Meanwhile, support is seen at 43.60 levels from here losses could be extended to 41.76 levels.
WTI challenges $ 44
Currently, WTI trades nearly -2.50% lower at 44.34, erasing entire Monday’s gains. US crude stocks built up over the past week as reflected by the latest API and persisting worries over China dragged oil prices lower.
The American Petroleum Institute (API) said late on Tuesday that US crude stockpiles grew by 7.6 million barrels in the week to August 28. Markets had forecast a rise of just 32,000 barrels.
The more important figures by the EIA will be published later in the day, with estimates pointing to an increase of 700,000 barrels.
Further adding to negative sentiment, the US dollar index rose 0.28% to 95.66 on Wednesday, waiting for more US data to decide on a clear direction.
The US ADP employment report, due to be released later in the day, is expected to be the major market mover ahead of crucial jobs report on Friday.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45 levels above which gains could be extended to 46.80 levels. Meanwhile, support is seen at 43.60 levels from here losses could be extended to 41.76 levels.