WTI corrects further to test $ 64 mark
- Will it hold $ 64 amid broad USD rebound?
- Goldman Sachs’ comments support.
WTI (oil futures on NYMEX) is seen replicating yesterday’s price-action so far this Tuesday, as it extends it corrective slide from three-year tops of $ 64.89 reached in the US last session.
WTI breaches 5-DMA support at 64.27
The barrel of WTI remains better offered, accelerating its declines over the last hours, as broad-based US dollar rebound gained traction amid a sell-off in Treasury yields and profit-taking. The USD index jumps +0.36% to flirt with daily tops of 90.47, having found solid support just ahead of the 90 handle. A stronger US dollar makes the USD-denominated oil more expensive for the foreign buyers.
Meanwhile, the buyers continue to lurk ahead of the $ 64 threshold, as the sentiment around the black gold remains underpinned by robust fundamentals, in the wake of the OPEC oil output cuts and a pickup in demand for crude globally, as the global economic outlook improves. More so, oil prices also benefit from a pause in the US oil output surge, alteast for the time being, as icy winter weather in North America has shut down some facilities. Also, the latest comments from Goldman Sachs continue to lend support to the commodity.
Markets now eagerly await the US crude inventories reports due later this week for the next push higher in oil prices. At the time of writing, WTI drops -0.12% to $64.22 while Brent slips -0.57% to $69.64.
WTI Technical Levels
The resistances are aligned at 64.89 (3-year highs) ahead of $ $65 (round number) and $ 65.50 (psychological levels). On the downside, supports are located at $64 (key support), $63.50 (psychological levels) and $63.29 (10-DMA).