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WTI steadies above $ 44, demand concerns, Fed weighs
FXStreet (Mumbai) - WTI oil on NYMEX extends its bearish bias on Monday after booking about a 3% loss for the past trading week, with markets expecting another volatile week amid China troubles, Fed rate decision and crude stockpiles report.
WTI awaits OPEC monthly outlook
Currently, WTI trades nearly -0.32% lower at 44.48, consolidating to the downside on the 44 barrier. US oil extends the drop from the previous session amid persisting demand concerns while markets now await the release of OPEC monthly report due later today for further moves.
Analysts at ANZ noted, "Oil prices fell further, as supply side concerns continued to dominate market sentiment and after a major bank downgraded its price forecasts.”
As for China, the latest report showed over the weekend that the country's industrial production rose 6.1% in August y/y, up from 6% a month before, but weaker than the 6.5% growth expected by analysts. China's retail sales, however, hiked 10.8% on a yearly basis, better than in July and also beating estimates. China is the world’s second largest oil consumer.
Meanwhile, the US dollar trades broadly weaker, cushioning further downside in oil. The US dollar index now trades -0.09% lower at 95.29.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45.88 levels above which gains could be extended to 47.23 levels. Meanwhile, support is seen 43.21 levels from here losses could be extended to 41.78 levels.
WTI awaits OPEC monthly outlook
Currently, WTI trades nearly -0.32% lower at 44.48, consolidating to the downside on the 44 barrier. US oil extends the drop from the previous session amid persisting demand concerns while markets now await the release of OPEC monthly report due later today for further moves.
Analysts at ANZ noted, "Oil prices fell further, as supply side concerns continued to dominate market sentiment and after a major bank downgraded its price forecasts.”
As for China, the latest report showed over the weekend that the country's industrial production rose 6.1% in August y/y, up from 6% a month before, but weaker than the 6.5% growth expected by analysts. China's retail sales, however, hiked 10.8% on a yearly basis, better than in July and also beating estimates. China is the world’s second largest oil consumer.
Meanwhile, the US dollar trades broadly weaker, cushioning further downside in oil. The US dollar index now trades -0.09% lower at 95.29.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 45.88 levels above which gains could be extended to 47.23 levels. Meanwhile, support is seen 43.21 levels from here losses could be extended to 41.78 levels.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
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