WTI fades a spike to $ 65.50 on firmer US dollar, global growth concerns

WTI (oil futures on NYMEX) failed to sustain the tepid bounce near $ 65.50 and dropped back below the $ 65 mark, as notable US dollar demand weighed down on the prices.

WTI heads for a test of $ 64.50.

The barrel of WTI is back on the offers, having attempted a minor recovery earlier today, as concerns over slowing economic growth prospects resurfaced amid China slowdown fears and impact of Turkey’s currency crisis on the Emerging Markets (EM).

Moreover, the ongoing rebound in the US dollar across its main competitors, in anticipation of the US-China trade talks scheduled later this week, also collaborated to the downbeat tone around the USD-sensitive oil.

However, the downside could be cushioned by the expected tightening of the global supplies, in the wake of the US sanctions on Iran. Meanwhile, attention turns towards the US weekly crude stockpiles data due to be reported on Tuesday and Wednesday for the next direction on the prices.

WTI Technical Levels

The Swissquote Bank Research Team noted: “Long positions above 64.80 with targets at 65.70 & 66.00 in extension. Below 64.80 look for further downside with 64.45 & 64.00 as targets.”