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WTI languishes near 6-year lows, around $ 36.50

FXStreet (Mumbai) - The rout in the oil prices extends for the sixth straight session on Friday and mires near the lowest levels since Feb 2009 amid persisting oversupply worries.

WTI hovers above $ 36/ barrel

Currently, WTI trades marginally lower at 36.63, within a striking distance of fresh more than six-year lows reached at 36.38 on Thursday. Oil prices are seen consolidating massive declines seen over the past one week and remains on track for further downside, as the oil production from the Middle-East continues to rise, as reflected by the latest OPEC’s monthly report.

The OPEC's latest monthly oil report showed the cartel's output climbed to 31.7 million barrels per day (bpd) in November, up 0.23 million bpd from a month earlier and hitting a three-year high.

Moreover, reports that the US Congress is mulling over lifting a more than 40 year ban on crude oil exports further intensified the supply glut concerns and drowned the prices to multi-year lows.

Meanwhile, markets now await oilfield Services Company Baker Hughes weekly rig count data for last week for further momentum on the black gold.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 37.20 (1h 50-SMA) above which gains could be extended to 37.67 (1h 100-SMA). While to the downside, the immediate support is at 36.38 (Dec 10 low), below which the prices could drop to 36 (Feb 2009 lows).

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