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WTI hovers near 6-year lows, above $ 37.50

FXStreet (Mumbai) - The oil futures on Nymex plunged to the lowest levels since Fed 2009 on 37 handle and now wavers within a striking distance of the multi-year lows as oversupply worries continue to spook oil markets.

WTI set to test 6-year lows

Currently, WTI trades modestly flat at 7.72, receding gradually towards $ 37.50 – fresh six-year lows. Oil prices appear to stabilize in Asia, although remains heavy as focus now turns to the weekly API inventory report for further cues on the oil supply scenario.

According to the API report, crude stockpiles in the US are expected to climb by 900k last week, after having jumped by 1.177 million barrels in the week to November 27.

Moreover, weaker Chinese trade data, with exports tumbling more than expectations and imports continued to slide, dents the oil market sentiment as China is the world’s second largest oil consumer.

WTI extended Friday’s slump and ended Monday almost 6% lower, as the OPEC decision of refraining from slashing production levels added to the persisting supply glut concerns and weighed heavily on the black gold.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 37.93 (hourly 20-SMA) above which gains could be extended to 39.30 (hourly 50-SMA). While to the downside, the immediate support is at 37.50 (Dec 7 low), below which the prices could drop to 37 (Feb 2009 lows).

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