Tuesday, September 22, 2015

WTI rallying to the $46.00 handle

FXStreet (Edinburgh) - The barrel of the West Texas Intermediate is sharply higher on Monday, currently trading in the upper bound of the range near $46.00 the figure.

WTI shrugs-off Friday’s drop

Crude oil prices are recovering part of the deep pullback seen last Friday, as market participants have been factoring in the recent drop in crude stockpiles (as per the EIA’s weekly report) and another decrease in US oil-rigs in use informed by driller Baker Hughes during last week, all pointing to some sort of reduction in crude oil output.

Market participants have also perceived today’s comments by Fed’s J.Bullard as hawkish, leaving the door open for a rate hike at the October meeting, which has in time boosted the riskier assets and lifted sentiment.

WTI levels to watch

The barrel of WTI is now up 3.00% at $46.02 and a surpass of $48.42 (high Sep.3) would open the door to $48.87 (high Sep.1) and finally $49.33 (high Aug.31). On the other hand, the immediate support lines up at $43.59 (low Sep.14) ahead of $43.36 (low Sep.10) and then $43.21 (low Sep.2).
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