WTI regains $38.00 and beyond

By FXStreet FXStreet (Edinburgh) – Prices for crude oil keep recovering ground on Wednesday, now managing to retake the $38.00 handle as USD-selling intensifies.

WTI firmer ahead of EIA

After hitting fresh multi-year lows near $36.50 on Tuesday, the barrel of West Texas Intermediate has now recovered the smile helped by a persistent selling interest around the US dollar.

In addition, market participants seem to have left behind the recent outcome from the OPEC meeting, where the cartel’s announcement of a higher output ceiling (31.5 mbpd) has been hammering prices since then.

Later in the session, the weekly EIA report on crude oil inventories is the only release of note, ahead of Friday’s oil rig count by driller Baker Hughes.

WTI levels to watch

At the moment the barrel of WTI is up 1.55 % at $38.09 facing the next support at $36.64 (2015 low Dec.8) followed by $36.00 (monthly low Feb.2009) and then $32.40 (monthly low Dec.20008). On the other hand, a breakout of $40.01 (23.6% Fibo of $50.90-$36.64) would expose $44.02 (55-day sma) and finally $44.48 (downtrend from $50.92).
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Source:: FX Street