5 Jun 2015
WTI treads water circa $ 58, OPEC decision eyed
FXStreet (Mumbai) - WTI oil futures on the Nymex halted its downward spiral and hovers around 58 levels ahead of an OPEC decision, with the American benchmarks expected to end this week in negative territory.
OPEC Meeting in focus
Currently, WTI trades flat at 57.98, trading in flat lining since Asia. Oil prices continues to trade in a flat line as traders refrain to create any fresh positions awaiting the outcome from the OPEC meeting, where no reduction to its output target is expected.
Oil prices kept losses this week shrugging off fifth weekly fall in the US crude stockpiles as investors were cautious in the anticipation of the outcome from the OPEC meeting in Vienna. The oil cartel is expected to keep its production target at 30 million bpd, but comments from key members could influence the trading mood. OPEC's Secretariat will announce its production strategy later in the day.
Moreover, a stronger greenback prevented oil from further gains as well, as it makes dollar-priced commodities such as oil more expensive for holders of foreign currencies. The US dollar index advanced 0.21% to 95.69 today.
Technical Levels
WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 61.43 levels. Meanwhile, support is seen at 57 levels from here losses could be extended to 55.50 levels.
OPEC Meeting in focus
Currently, WTI trades flat at 57.98, trading in flat lining since Asia. Oil prices continues to trade in a flat line as traders refrain to create any fresh positions awaiting the outcome from the OPEC meeting, where no reduction to its output target is expected.
Oil prices kept losses this week shrugging off fifth weekly fall in the US crude stockpiles as investors were cautious in the anticipation of the outcome from the OPEC meeting in Vienna. The oil cartel is expected to keep its production target at 30 million bpd, but comments from key members could influence the trading mood. OPEC's Secretariat will announce its production strategy later in the day.
Moreover, a stronger greenback prevented oil from further gains as well, as it makes dollar-priced commodities such as oil more expensive for holders of foreign currencies. The US dollar index advanced 0.21% to 95.69 today.
Technical Levels
WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 61.43 levels. Meanwhile, support is seen at 57 levels from here losses could be extended to 55.50 levels.