FXStreet (Mumbai) - The US oil keeps its recovery mode from three-month lows above 42 threshold, as the prices received renewed impetus from a broadly weaker US dollar and a smaller than expected rise in the crude inventories.
WTI stuck below 42.50 levels
Currently, WTI trades 0.30% higher at 42.08, finally breaching Monday’s high posted at 42.25. Oil prices remains lifted and clinches previous gains as the US dollar dropped sharply across the board after Wednesday’s FOMC minutes was read less hawkish and resulted in the drop in the Dec Fed rate hike bets. A weaker greenback is favourable for the dollar-priced commodities as they become cheaper for overseas buyers.
Also, supporting the upbeat sentiment around the black gold, US crude inventories rose 252,000 barrels to 487.3 million barrels in the week to November 13, however, rose less than 1.75 million barrel expected.
Later today, oil prices will remain lifted amid broad based US dollar weakness and ahead of the US datasets due for release in the NY session.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 42.50 (round number) above which gains could be extended to 43.33 (Nov 12 High). While to the downside, the immediate support is at 40.22 (Nov 13 Low), below which the prices could drop to 39.86 (Aug 21 Low).
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