WTI Drops to Lows Near $43.00
After posting fresh 2016 highs near $44.50 in early trade, prices for the barrel of West Texas Intermediate (WTI) have quickly fell back to test the $43.00 support.
WTI lower on USD-buying
Prices for the black gold have met a wave of selling pressure as the US Dollar Index was rebounding from key support levels following Draghi’s press conference.
Previously, comments by oil officials that the oil market could be more ‘balanced’ in the next months have given extra legs to crude prices.
Additionally, a Saudi advisor has argued that oil-producing countries will discuss the likeliness of an output freeze at the OPEC meeting in June, adding hopes of an agreement and collaborating with the initial upbeat tone amongst traders.
WTI levels to consider
At the moment the barrel of WTI is losing 1.61% at 43.53 and a breakdown of $39.96 (200-day sma) would open the door to $39.57 (20-day sma) and finally $39.02 (low post-Doha Apr.18). On the upside, the next hurdle aligns at $44.48 (2016 high Apr.21) would expose $48.36 (high Nov.3 2015).