Tuesday, November 24, 2015

WTI back above $42.00 in choppy trade

FXStreet (Edinburgh) - Prices for crude oil keep the erratic trade at the beginning of the week, now returning to the positive territory around the $42.00mark per barrel.

WTI rebounds from $39.00

After bottoming out around the $39.00 handle in early trade, the barrel of West Texas Intermediate has managed to gather further traction and retake the $42.00 level and beyond in response to a potential agreement between Saudi Arabia and other oil-producer countries in order to stabilize prices. This scenario has now lost some momentum, although prices remain resilient at current levels.

The strong bid sentiment around the greenback keeps limiting potential gains in the USD-denominated assets for the time being, as market expectations of a rate hike by the Federal Reserve at its December meeting continue to build up.

WTI levels to watch

At the moment the barrel of WTI is up 0.48% at $42.11 and a surpass of $42.77 (38.2% Fibo of $37.75-%50.90) would expose $44.97 (55-day sma) and finally $46.23 (downtrend from $50.92). On the other hand, the initial support lines up at $38.99 (low Nov.23) followed by $37.75 (2015 low Aug.24).
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