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).
