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WTI extends towards $ 46, China PMI, Syria underpins

FXStreet (Mumbai) - WTI oil on NYMEX extends the upward trajectory for the third straight session on Thursday, as oil traders moved past rising crude reserves news and now cheer the above estimates China PMI reports. While ongoing geopolitical tensions surrounding Syria also support the black gold.

WTI: Finds good support at $ 44.30

Currently, WTI trades over 1.51% higher at 45.77, testing highs and aiming for 46 barrier. US oil continues to trade higher, as the recent global updates offset the worries over rising crude supplies.

Markets continue to cheer the latest China manufacturing PMI reports which reflected that the economy’s manufacturing sector showed slight improvement in September with both the gauges coming in above estimates. China is the world’s second largest consumer of oil. Moreover, Russian and US air strikes in Syria could also lend further support to oil prices.

On Wednesday, EIA weekly report showed that the US crude inventories rose by 3.96 million barrels to a three-week high of 457.9 million barrels in the week to September 25. Markets had forecast a fall of 500,000 barrels.

Later in the day, oil traders will watch for the US dollar moves as the US manufacturing report and weekly jobless claims may spur some volatility in the market.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 46.74 levels above which gains could be extended to 47.15 levels. Meanwhile, support is seen 43.92 levels from here losses could be extended to 43.

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