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WTI testing $ 46 on US rigs fall & geo-political tensions

FXStreet (Mumbai) - WTI oil on NYMEX reversed a brief drop in the overnight trades and extends gains from Asia, as investors’ cheer the recent rig count report while the looming tensions over Syria also lend helping hand to the black gold prices.

WTI supported above $ 45.50

Currently, WTI trades 0.81% higher at fresh session highs of 45.91, aiming to conquer 46 mark and beyond. US oil extends the rally from Friday as the oil markets’ sentiment remains boosted on US rig count report which revealed that the US oil rig count fell the most since April.

Oilfield services company Baker Hughes showed on Friday that the number of oil rig counts in the US dropped by 26 over the past week, falling the most since April this year. The total rig count now stands at 614, the least since August 2010.

Moreover, the ongoing geopolitical tensions between Syria and Russia also raised concerns over supply disruptions from the former, thus boosting the oil prices.

Meanwhile, a weaker US dollar against its major rivals also supports the upside in the oil prices. The greenback remains broadly undermined as markets react negatively to the poor NFP report released on Friday.

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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