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WTI drops in Asia on profit-taking, below $ 46

FXStreet (Mumbai) - WTI oil snapped the previous rally and turned lower on Thursday, as markets took profits after the relentless rise seen yesterday.

WTI drops below $ 46

Currently, WTI falls -0.63% to 45.65, moving away from fresh weekly highs scored at 46.22 in the last US session. Oil prices are seen currently posting moderate losses, correcting lower after the heavy gains booked yesterday.

The black gold rebounded sharply from near fresh two-month lows and spiked to the highest levels in a week after the EIA weekly stockpiles report showed that that crude reserves in the US rose 3.4 million barrels over the week to October 23, only slightly more than estimates for a 3.1 million barrel rise and exhibiting the smallest rise in five weeks.

However, further upside was capped by a sudden USD rally triggered by the hawkish Fed statement, which reinforced Dec rate hike beliefs in markets.

Markets now await the US GDP estimates for further USD moves, which will eventually impact oil. While Friday’s rig counts report from the US will be also eyed.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 46.22 (Oct 28 High) levels above which gains could be extended to 47.08 (daily R1). While to the downside, the immediate support is at 45 (round number), below which the prices could drop to 44.66 (5-DMA).

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