WTI halts its weekly rally, drops over 1% in Asia

FXStreet (Mumbai) – WTI oil on NYMEX slipped into the negative territory on Monday, after witnessing first weekly rise in eight during the last week, as Chinese fears returned to markets with all eyes now on the crucial Chinese and US macro data due later this week for further direction.

WTI capped below $ 45

Currently, WTI trades nearly -1.30% lower at 44.63, failing to regain 45 levels and beyond. Oil traders took a breather on Monday after booking strong gains over the previous trading week, as oil prices head for another monthly fall with focus shifting back on worries over China and the ongoing supply glut.

In China, one of the world’s biggest oil consumers, the market sell-off returned on Monday after some stabilization last week, despite weekend comments from country’s Premier Li Keqiang who said that Beijing would “enact more targeted and responsive macro-regulation to offset downward economic pressure, more robust reform and innovation efforts to energize the market.”

The Shanghai Composite index fell almost 3% on Monday, after posting a weekly loss of about 8%.

This week will bring some important data, including weekly reports on US crude reserves on Tuesday and Wednesday. Last week, the Energy Information Administration (EIA) reported an outflow of 5.45 million barrels.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 45 levels above which gains could be extended to 45.90 levels. Meanwhile, support is seen at 44 levels from here losses could be extended to 42.50 levels.

WTI oil on NYMEX slipped into the negative territory on Monday, after witnessing first weekly rise in eight during the last week, as Chinese fears returned to markets with all eyes now on the crucial Chinese and US macro data due later this week for further direction.

(Market News Provided by FXstreet)