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WTI steadies in Asia, near $ 46.50

FXStreet (Mumbai) - WTI oil prices halted its downslide and took a breath of fresh air on the back of a broadly lower dollar while investors continue to digest the EIA weekly inventory report.

WTI in flat-lining after Wednesday’s sharp fall

Currently, WTI trades modestly flat at 46.37, having lost almost $ 2 yesterday. Oil prices traded around a flat-line in the Asian session, consolidating heavy losses incurred on Wednesday on the back rising crude reserves and Yellen-led USD rally.

The black gold faced double whammy on Wednesday from the Fed Chair Yellen’s hawkish comments inspired renewed USD rally on one hand and a sixth straight weekly rise in US crude inventories on the other.

Oil stockpiles in the US rose by 2.85 million barrels in the week ending October 30, against the 2.25 million barrel increase expected by the market.

Analysts at ANZ noted, "Weakness in energy prices, driven by a strong build up in US crude oil inventories, will continue to weigh on the wider commodity complex."

Looking ahead, markets will await Fed speaks due later today for fresh cues on the Fed lift-off timings, which may have major influence on the USD, eventually impacting oil prices. While the main focus remains Friday’s NFP report.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 47.03 (Oct 10 High) levels above which gains could be extended to 47.49 (Oct 19 High). While to the downside, the immediate support is at 46 (round number), below which the prices could drop to 45.48 (Oct 30 Low).

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