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WTI drops on bearish API report, near $ 41.50

FXStreet (Mumbai) - The oil futures on Comex extend losses for the fifth consecutive session on Wednesday, on mounting oversupply worries after the API report showed an unexpected rise in the crude reserves in the US last session.

WTI capped below 42 barrier

Currently, WTI drops 0.73% to fresh session lows at 41.51, notwithstanding 42 handle. Oil prices drop this session as traders remain cautious and refrain from placing big bets ahead of the key risk events this week – ECB meeting, US NFP report and the OPEC meeting.

OPEC member are scheduled to meet this Friday in order to discuss topics such as oil production levels and price stability.

In addition, the latest API report showed that the US crude reserves increased by 1.6 million barrels to 489.9 million barrels in the week to November 27, as opposed to a fall of 471,000 barrels expected.

In the day ahead, oil prices are expected to remain subdued on the back of broad based US dollar comeback while traders eye Wednesday’s EIA stockpiles report for fresh direction.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 42.60 (Nov 30 high) above which gains could be extended to 43.46 (Nov 24 high). While to the downside, the immediate support is at 40.41 (Nov 23 Low), below which the prices could drop to 40.06 (Nov 16 Low).

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