Wednesday, September 16, 2015

WTI rises to $ 45 in Asia, weaker USD underpins

FXStreet (Mumbai) - WTI oil on NYMEX extended gains on Wednesday, following the favourable crude stockpiles report released by API on Tuesday while a broadly weaker US dollar also lent a helping hand.

WTI tests $ 45 on USD weakness

Currently, WTI trades nearly 0.68% higher at 44.90, fighting hard to regain $ 45 marker and beyond. US oil edged higher this session on the back of a weaker greenback while traders also cheered an unexpected stockpile fall.

The American Petroleum Institute (API) said on Tuesday that crude stocks in the US shrank by 3.1 million barrels for the week to September 11, while analyst had expected a rise.

Meanwhile, the US dollar index traded 0.13% lower at 95.64, boosting appetite for dollar-denominated assets such as oil as it makes them cheaper in other currencies.

On Tuesday, oil prices were boosted by news that the US White House did not support lifting a ban on crude oil exports that has been in place for more than 40 years.

Later today, the Energy Information Administration (EIA) will deliver its figures, with estimates pointing to a rise of 1.75 million barrels.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 45.88 levels above which gains could be extended to 47.23 levels. Meanwhile, support is seen 43.21 levels from here losses could be extended to 41.78 levels.
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