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WTI capped below $ 48 on mixed China data

FXStreet (Mumbai) - WTI oil snaps a 2-day rally and falls back in the red on Monday, as mixed Chinese macro data and persisting oversupply worries weighed on investors’ sentiment.

WTI rejected at hourly 200--SMA

Currently, WTI trades -0.61% lower at 47.43, retreating slightly from fresh session lows struck at 47.33 in last hours. Oil prices correct lower this session as traders digest the latest mixed releases from China, with the GDP figures outpacing estimates (6.9% vs. 6.8% exp.) while the industrial production and fixed asset investment data disappointed markets.

However, the losses may remain cushioned by the upbeat US oil rig count report published by oilfield Services Company Baker Hughes late on Friday. The report showed the number of US rig counts dropped by 10 to 595 over last week, marking the seventh consecutive weekly drop and bringing the rig count down to fresh five-year lows.

Meanwhile, markets may refrain from taking big bets on oil ahead of Wednesday’s OPEC and non-OPEC members’ technical meeting in Vienna.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 47.96 (hourly 200-SMA) levels above which gains could be extended to 48.43 (Oct 13 High) levels. Meanwhile, support is seen 46.84/82 (hourly 100 & 50-SMA) levels from here losses could be extended to 46 (round number).

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