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16 Jul 2015
Oil climbs higher around $ 52
FXStreet (Mumbai) - WTI oil prices on NYMEX reversed Wednesday’s sharp losses and edged higher today backed by rising demand from refineries and on a bigger-than-expected fall of US crude inventories reported by EIA.
Oil rises despite stronger USD
Currently, WTI trades 0.80% higher at 51.80, having posted session highs at 52.06. Oil prices turned in the positive territory on Thursday as markets cheer news of above estimates outflow from US crude reserves while higher refinery demand also pushed the prices higher.
US stockpiles fell by 4.346 million barrels in the week to July 10, the Energy Information Administration said on Wednesday, following the 384,000 barrel increase seen in the week before. Markets had been expecting a drop of 1.242 million barrels.
However, the upside remains limited as the US dollar remains lifted across the board amid rate-hike talks fuelled by Fed Yellen’s testimony on Wednesday. The dollar index, a virtual gauge of the greenback’s strength now trades 0.17% higher at 97.45.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 52 levels above which gains could be extended to 53.93 levels. Meanwhile, support is seen at 50.58 levels from here losses could be extended to 50 levels.
Oil rises despite stronger USD
Currently, WTI trades 0.80% higher at 51.80, having posted session highs at 52.06. Oil prices turned in the positive territory on Thursday as markets cheer news of above estimates outflow from US crude reserves while higher refinery demand also pushed the prices higher.
US stockpiles fell by 4.346 million barrels in the week to July 10, the Energy Information Administration said on Wednesday, following the 384,000 barrel increase seen in the week before. Markets had been expecting a drop of 1.242 million barrels.
However, the upside remains limited as the US dollar remains lifted across the board amid rate-hike talks fuelled by Fed Yellen’s testimony on Wednesday. The dollar index, a virtual gauge of the greenback’s strength now trades 0.17% higher at 97.45.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 52 levels above which gains could be extended to 53.93 levels. Meanwhile, support is seen at 50.58 levels from here losses could be extended to 50 levels.