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21 May 2015
WTI extends rally towards $ 60
FXStreet (Mumbai) - WTI oil futures on the Nymex extends gains for the second straight session, rebounding sharply from fresh 3-week lows reached on Tuesday, as traders continue to cheer the third straight weekly fall in US crude inventories while a weaker US dollar also keeps the oil prices supported.
WTI at fresh session highs
Currently, WTI trades 1.20% higher at 59.69, hovering close to fresh session highs reached at 59.78 some minutes ago. Oil prices posed a solid recovery from Tuesday’s low and gains nearly 1% this session largely tracking broad US dollar weakness after the dovish Fed minutes release. Markets now await a host of US economic releases due later today for further impact on the US dollar.
The US dollar index fell -0.60 on Thursday, and trades at 95.10, allowing dollar-priced commodities to rise as it makes them cheaper for traders holding other currencies.
Moreover, oil prices ride higher on the back of a bigger-than-expected drop in the US crude inventories reported yesterday. US crude stockpiles fell by 2.67 million barrels in the week to May 15, marking the third consecutive decline, the Department of Energy showed on Wednesday, exceeding the 2 million barrel fall that the market had expected.
Technical Levels
WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 62 levels. Meanwhile, support is seen at 57.50 levels from here losses could be extended to 56 levels.
WTI at fresh session highs
Currently, WTI trades 1.20% higher at 59.69, hovering close to fresh session highs reached at 59.78 some minutes ago. Oil prices posed a solid recovery from Tuesday’s low and gains nearly 1% this session largely tracking broad US dollar weakness after the dovish Fed minutes release. Markets now await a host of US economic releases due later today for further impact on the US dollar.
The US dollar index fell -0.60 on Thursday, and trades at 95.10, allowing dollar-priced commodities to rise as it makes them cheaper for traders holding other currencies.
Moreover, oil prices ride higher on the back of a bigger-than-expected drop in the US crude inventories reported yesterday. US crude stockpiles fell by 2.67 million barrels in the week to May 15, marking the third consecutive decline, the Department of Energy showed on Wednesday, exceeding the 2 million barrel fall that the market had expected.
Technical Levels
WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 62 levels. Meanwhile, support is seen at 57.50 levels from here losses could be extended to 56 levels.