WTI Below $42.00, Losses Momentum Ahead of EIA
The barrel of West Texas Intermediate has retreated from recent highs above the $42.00 mark, returning to the $41.70 area.
WTI lower on USD buying, Saudi Arabia
The
persistent bid tone around the US dollar continues to undermine the
recent strong recovery in crude oil prices, pushing the barrel of WTI
from fresh 2016 highs in the $42.20 area to the current $41.70 region.
Furthermore,
crude oil prices have deflated further after Saudi Arabia’s oil
minister argued that the country will not join the (potential)
coordinated output cut, all ahead of the key meeting in Doha on Sunday.
WTI levels to consider
At
the moment the barrel of WTI is retreating 1.54% at $41.51 and a break
below $40.27 (200-day sma) would aim for $38.98 (20-day sma) and finally
$38.42 (76.4% Fibo of $26.05-$42.25). On the other hand, the next up
barrier aligns at $42.25 (2016 high Apr.12) followed by $43.46 (high
Nov.24 2015) and then $48.36 (high Nov.3 2015).
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