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21 Aug 2015
WTI heads for huge weekly loss, China woes intensify
FXStreet (Mumbai) - WTI oil on NYMEX is seen extending its ongoing rout and trades with sizeable losses in the European morning, heading for huge weekly falls as the oversupply and concerns over China dent investors’ sentiment.
WTI sits at 6-1/2 year lows below $ 41
Currently, WTI trades -1.22% lower at 40.81, looking to test multi-year lows reached at $ 40.50 on Thursday. Oil prices remains submerged in the red as remain wary over same problems - a global supply glut, worries over Iran returning to the market and China's slowing economy.
Moreover, stocks in China slumped on Friday, adding to fears over the country's economic health. China is a key oil consumer and a weakening economy may slow its demand for the commodity.
Still, losses on oil were limited as the US dollar index fell -0.33% to 95.45, with the US currency and dollar-priced commodities reacting inversely.
The US oil benchmark is heading for an eighth straight weekly fall, the longest weekly losing streak since 1986.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 41.50 levels above which gains could be extended to 43 levels. Meanwhile, support is seen at 40.50 levels from here losses could be extended to 39 levels.
WTI sits at 6-1/2 year lows below $ 41
Currently, WTI trades -1.22% lower at 40.81, looking to test multi-year lows reached at $ 40.50 on Thursday. Oil prices remains submerged in the red as remain wary over same problems - a global supply glut, worries over Iran returning to the market and China's slowing economy.
Moreover, stocks in China slumped on Friday, adding to fears over the country's economic health. China is a key oil consumer and a weakening economy may slow its demand for the commodity.
Still, losses on oil were limited as the US dollar index fell -0.33% to 95.45, with the US currency and dollar-priced commodities reacting inversely.
The US oil benchmark is heading for an eighth straight weekly fall, the longest weekly losing streak since 1986.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 41.50 levels above which gains could be extended to 43 levels. Meanwhile, support is seen at 40.50 levels from here losses could be extended to 39 levels.