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21 Aug 2015
WTI extend the drop, breaches $40.00
FXStreet (Edinburgh) - The barrel of West Texas Intermediate remains mired in the negative territory at the end of the week, with sellers pushing below the critical $40.00 for the first time since 2009.
WTI in multi-year lows
Crude oil prices are retreating for the eighth consecutive week to multi-year lows in levels sub-$40.00. Recent poor results from the Chinese manufacturing PMI have added to the already downbeat sentiment around the potential slowdown in the Asian economy, rising concerns amongst investors.
Today’s slump in the US dollar did nothing to alleviate the downside pressure in crude oil, where jitters on the global supply glut continue to prevail.
Data wise this week, the EIA has reported an unexpected increase in crude stockpiles of 2,7 million barrels, while driller Baker Hughes informed that US oil rigs in use have increased by 2 to 674 during last week.
WTI levels to watch
At the moment WTI is retreating 3.12 % at $40.03 with the next support at $39.84 (low Aug.21) followed by $34.03 (monthly low February 2009). On the upside, a break above $46.94 (high Aug.3) would aim for $48.62 (high Jul.31) and finally $49.52 (high Jul.29).
WTI in multi-year lows
Crude oil prices are retreating for the eighth consecutive week to multi-year lows in levels sub-$40.00. Recent poor results from the Chinese manufacturing PMI have added to the already downbeat sentiment around the potential slowdown in the Asian economy, rising concerns amongst investors.
Today’s slump in the US dollar did nothing to alleviate the downside pressure in crude oil, where jitters on the global supply glut continue to prevail.
Data wise this week, the EIA has reported an unexpected increase in crude stockpiles of 2,7 million barrels, while driller Baker Hughes informed that US oil rigs in use have increased by 2 to 674 during last week.
WTI levels to watch
At the moment WTI is retreating 3.12 % at $40.03 with the next support at $39.84 (low Aug.21) followed by $34.03 (monthly low February 2009). On the upside, a break above $46.94 (high Aug.3) would aim for $48.62 (high Jul.31) and finally $49.52 (high Jul.29).