Monday, November 2, 2015

WTI drops in Asia on China PMIs, below $ 47

FXStreet (Mumbai) - WTI oil inched lower in Asia, easing-off weekly highs reached just ahead of 47 barrier on Friday, as weak Chinese PMI reports coupled with profit-taking weighed on the black gold.

WTI hovers around $ 46.40

Currently, WTI falls -0.30% to 46.45, recovering losses from 46.16 session lows. Oil prices retreated slightly from weekly highs in Asia as another set of weak Chinese PMI readings highlighted the weak aggregate demand in the world’s second largest oil consumer, and therefore dampened investors’ sentiment.

As per Markit, China's factory activity shrunk in October for a third straight month while the latest survey from Caixin on Monday showed that China's PMI stood at 48.3 in October, beating forecasts for a reading of 47.60, although remains in contraction.

Moreover, markets resorted to profit-booking after the oil prices staged a solid comeback from below $ 43 barrier and jumped to weekly highs near $ 47. While an eventful week ahead with the US NFP data to remain the main highlight. Besides, the weekly API and EIA crude inventory reports will be closely eyed.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 47.03 (Oct 30 High) levels above which gains could be extended to 47.91 (Oct 16 High). While to the downside, the immediate support is at 46 (round number), below which the prices could drop to 45.48 (Oct 30 Low).
For more information, read our latest forex news.

No comments:

Post a Comment