WTI struggles for direction on $43 handle
|Oil prices have recovered after a negative opening at the start of the week on fears of further growth in U.S. crude output against forecasts of a weather-related weekly decline in domestic supplies.
The tropical storm in the Gulf of Mexico has raised concerns in a market that has been awash with bearishness. There are concerns that the U.S. crude-oil production outweighs the Organization of the Petroleum Exporting Countries’ effort to remove surplus barrels from the market in support of prices.
The market broke a key downside level at $43.50 last month and bulls have struggled to get above water on the $45 handle since. A key technical level at 44.10 and 45.25/32 are the resistance areas that bulls need to conquer while to the downside, 41.80 and 39.10/20 are the downside levels. Meanwhile, the dollar struggles in an environment where yields are an anchor and capps downside territory in WTI below the 42 handle.
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