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WTI back below $ 40 after OPEC did nothing

FXStreet (Mumbai) - Oil futures on Nymex continued to trade in the negative territory on Monday, extending heavy losses seen on last Friday after OPEC’s meeting turned out to be non-event.

WTI hovers near multi-week lows

Currently, WTI -0.84% to 39.62, retreating slightly from fresh session lows struck at 39.41. Oil prices keep losses as investors were disappointed after OPEC refrained from slashing production levels last Friday.

WTI booked a 3% weekly loss on Friday after OPEC left its current output target of 30 million barrels per day (bpd), unchanged. Moreover, the International Energy Agency (IEA) report showed that OPEC's crude oil output hit 31.7 million bpd in June, hitting a three and half year high, which further weighed on oil prices.

Markets appear to ignore Baker Hughes US oil rig counts report which showed that the number of rig counts had fallen by 10 to a total of 545 last week, as attention now turns towards the API and EIA weekly inventories report for this week.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 40.15 (daily high) above which gains could be extended to 40.60 (1h 50-SMA). While to the downside, the immediate support is at 38.99 (Nov 22 low), below which the prices could drop to 38.50 (multi-month lows).

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