WTI advances on weaker US dollar

FXstreet.com (Barcelona) - The price of the barrel of WTI is inching higher on Monday, gaining ground after four consecutive sessions of losses, after positive Chinese data have bettered prospects for crude demand.

“Oil price consolidates the recent losses off 90.31, 03 Dec high that cracked the channel support below 86.00. Brief consolidation above the latter is seen preceding fresh weakness, as near-term studies maintain negative tone and keep the downside vulnerable. Loss of last week’s low at 85.67 would open 85.35, 28 Nov low and psychological 85.00, with upside being capped at 89.00 zone for now. Only regain of 88.00, 50% of 90.31/85.67, would turn near-term focus higher”, assesses S.Dvrenica, analyst at Windsor Brokers Ltd.

The WTI is now up 0.38% at $86.20/bbl, and according to the expert, the next resistance levels lie at 86.77, 87.00 and 87.44; on the flip side, support levels lie at 86.00, 85.77 and 85.67