WTI down to test $38.00

Pablo Piovano FXStreet

FXStreet (Edinburgh) - Crude oil prices are collapsing at the beginning of the week, finding some support around the $38.00 mark per barrel so far.

WTI slumps on OPEC, USD

The barrel of West Texas Intermediate is trading at shouting distance from YTD lows at $37.75 recorded in late August following the recent outcome from the OPEC meeting, where the oil cartel has informed that it will increase its quota to 31.5 mbpd, closing the door to any hope of cutting its output.

In addition, the re-emergence of the bid tone around the dollar has been weighing on USD-denominated assets since Friday’s release of US Non-farm Payrolls (211K), supporting further the case for a Fed’s lift-off next week.

WTI levels to watch

At the moment the barrel of WTI is losing 4.18 % at $38.30 facing the next support at $37.75 (2015 low Aug.24). On the other hand, a breakout of $43.55 (38.2% Fibo of $50.90-$38.99) would expose $44.18 (55-day sma) and finally $44.77 (downtrend from $50.92).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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