Tuesday, October 20, 2015

WTI challenges lows around $46.50

FXStreet (Edinburgh) - Crude oil prices are tumbling at the beginning of the week, with the barrel of West Texas Intermediate hovering over the mid-$46.00s per barrel.

WTI lower on USD-strength, China

Prices for the WTI are trading on the defensive side on Monday in response to Chinese GDP figures during the third quarter (6.9%), feeding further rumours of a potential slowdown in the domestic economy.

Coupled with that, concerns over the ongoing supply glut plus the recovery of the US dollar keep the upside contained so far and collaborate with the downbeat sentiment.

Ahead in the week, the meeting between OPEC and non-OPEC countries is expected to yield no news regarding the likeliness of a cut in oil production.

WTI levels to watch

At the moment the barrel of West Texas Intermediate is down 2.14 % at $46.70 with the immediate support at $45.73 (uptrend from 2015 low) followed by $44.84 (55-day sma) and finally $43.61 (23.6% Fibo of $62.58-$37.75). On the upside, a surpass of $47.24 (38.2% Fibo of $62.58-$37.75) would target $48.85 (100-day sma) and then $50.92 (high Oct.9).
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