2 Jul 2015
WTI hovers around $ 57
FXStreet (Mumbai) - WTI oil futures on the Nymex defends mild gains in early European moves, posing a mild rebound after reaching fresh three month lows in the previous session following unexpected rise in crude stockpiles.
WTI near 3-month lows
Currently, WTI trades 0.22% higher at 57.09, retracing from close to 3-month lows posted at 56.88 in Asia. Oil prices stages a weak recovery as the black gold is likely to remain pressured as traders digest surprising stocks build up reflected by EIA report on Wednesday.
Crude oil took a hit on Wednesday, after the Energy Information Administration said crude inventories in the US rose 2.4 million barrels in the week to June 26, the first weekly build since late April. That surprised traders as the market had expected about a 2.5 million barrel drop.
Moreover, oil remains pressured as US dollar is expected to rebound higher backed by latest solid jobs data while traders await today’s NFP figures to confirm the strength in the greenback.
Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinkert
Meanwhile, talks over Iran's nuclear program continue in Vienna, with the deadline for reaching a deal set for July 7.
Analysts at ANZ said that Tehran isnear a deal to ease oil sanctions after almost two years of talks. "But the nation's goal to increase oil exports by 50% as soon as restrictions are lifted looks difficult to achieve, limiting short-term downside risk to oil prices."
Technical Levels
WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.98 levels. Meanwhile, support is seen at 56.68 (July 1 Low) levels from here losses could be extended to 56 levels.
WTI near 3-month lows
Currently, WTI trades 0.22% higher at 57.09, retracing from close to 3-month lows posted at 56.88 in Asia. Oil prices stages a weak recovery as the black gold is likely to remain pressured as traders digest surprising stocks build up reflected by EIA report on Wednesday.
Crude oil took a hit on Wednesday, after the Energy Information Administration said crude inventories in the US rose 2.4 million barrels in the week to June 26, the first weekly build since late April. That surprised traders as the market had expected about a 2.5 million barrel drop.
Moreover, oil remains pressured as US dollar is expected to rebound higher backed by latest solid jobs data while traders await today’s NFP figures to confirm the strength in the greenback.
Watch the NonFarm Payrolls Live Coverage with Valeria Bednarik and Dale Pinkert
Meanwhile, talks over Iran's nuclear program continue in Vienna, with the deadline for reaching a deal set for July 7.
Analysts at ANZ said that Tehran isnear a deal to ease oil sanctions after almost two years of talks. "But the nation's goal to increase oil exports by 50% as soon as restrictions are lifted looks difficult to achieve, limiting short-term downside risk to oil prices."
Technical Levels
WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.98 levels. Meanwhile, support is seen at 56.68 (July 1 Low) levels from here losses could be extended to 56 levels.