WTI consolidates Thursday’s slide below $71 mark
- WTI sellers take a breather after the two-day heavy sell-off.
- DXY on track for the best week in nine months.
- The downside to be capped by upbeat oil demand outlook.
WTI (futures on Nymex) is wavering in a narrow range on the $70 level so far this Friday, having faced rejection at the $71 threshold.
At the time of writing, the US oil posts small losses near 70.69, looking to record the third straight weekly rise.
The black gold extends its corrective downside from two-and-a-half year highs of $72.99, although strengthening demand outlook for oil is likely to keep the pullback short-lived.
Meanwhile, the persistent US dollar’s strength after the Fed turned hawkish and signalld sooner-than-expected rate hikes, keeping the upside attempted limited in the USD-sensitive oil. The dollar is set to record the best week in nine months, currently holding near two-month highs.
Further, progress in the nuclear talks between Iran and the US also undermines the sentiment around oil. Earlier this week, Iran announced that it has reached a broad agreement with the US over the lifting of the energy sanctions.
WTI technical levels to consider
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.
