- Tone of weakness in stocks limits WTI rebound.
- API data showed an increase in US crude inventories, today EIA data.
The WTI (future in NYMEX) stopped the corrective retracement that began at the highs of the month at $ 41.88, in the zone of $ 41.00 in the last hours. It reached the lowest level of the day at $ 40.86.
The Stock market climate may be key to crude oil prices. These range from expectations of more fiscal stimulus in the US, new restrictions in Europe due to the advance of coronavirus cases and political uncertainty in the US.
The decline in oil occurred despite some weakness that the dollar is experiencing on Wednesday. The DXY is trading below 93.00, the lowest level since early September.
US oil rallied quickly as buyers look to regain control in the near term amid expectations of a reduction in weekly US crude inventory data from the Information Administration of Energy (EIA), to be published on Wednesday at 14:30 GMT.
WTI technical levels
“The bullish reading on the 14-day Relative Strength Index and the positive value on the MACD histogram, suggests room for a break above $ 41.72. That would expose the 2020 high of $ 43.78 reached on August 26. A bearish reversal would be confirmed if the resistance at $ 41.72 holds and sends prices back below Tuesday’s low of $ 40.46, ”explained Omkar Godbole, analyst at FXStreet.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
