Oil of Day’s Low to $48.00 Mark, Eyeing API Inventory Data
WTI crude oil
prices remained suppressed for the third consecutive session, weighed
down by a stronger US Dollar and as concerns of global supply glut
resurface.
At the time of writing, the commodity was hovering around $48.00/barrel
mark, off day's through level of $47.63 as traders turn their focus to
API's preliminary release of weekly US crude oil inventories data, later
during NY session.
In last few trading session, receding worries of supply disruption from
Canada and Africa has resurfaced concerned of global oversupply.
However, the ongoing strike by French oil workers might continue to dent
global supply and support prices from falling further.
Meanwhile, the ongoing strength for the US Dollar on rising expectations
of a June Fed rate-hike has also been weighting on the black gold. Oil
traders now look forward to the next OPEC meeting in Vienna on June 2
for further development towards reaching an agreement on oil output
freeze.
Technical levels to watch
On a sustained move back above $48.00 handle, the commodity might aim
back towards recent daily closing highs resistance near $48.70-75
region, which if conquered now seems to pave way for extension of the
near-term upward trajectory towards the very important $50.00
psychological mark resistance.
On the flip side, $47.20-$47.00 mark remains immediate strong support to
watch for, which if broken might trigger a near-term corrective move
for the commodity immediately towards $46.00/barrel mark and eventually
below $45.00 mark, to $44.60-50 zone.
