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WTI rebounds from 3-week lows, nears $ 45

FXStreet (Mumbai) - WTI oil halted a five-day losing streak and edged higher in the European session on the back of a broadly weaker US dollar.

WTI capped below $ 45

Currently, WTI trades 0.44% higher at 44.80, striving hard to regain $ 45 and beyond. Oil prices edged higher as markets resorted to profit-taking after the recent declines to three-week troughs.

However, the upside remains capped as markets digest the latest report from Goldman Sachs, citing that the black gold is poised for sharper declines as the product storage hovers near maximum capacity.

Moreover, in a further evidence of diminishing investors’ confidence in oil, fresh CFTC data showed late on Friday that speculators are cutting bets on rising oil prices, while net speculative long positions declined by 13,841 contracts for the week ending October 20.

Later this week, the usual weekly inventory reports from the EIA and API will be closely eyed. While the Fed statement on Wednesday will remain the main driver for the financial markets.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 45.17 (h1 50-SMA) levels above which gains could be extended to 46.10 (h1 200-SMA) levels. Meanwhile, support is seen 44 (round number) from here losses could be extended to 43.71 (Sept 24 Low).

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