WTI Oil: Recovery stalls as OPEC meeting unlikely

By FXStreet FXStreet (Mumbai) – The recovery in the WTI oil futures ran out of steam at the hourly 50-MA after the Reuters report said Venezuela’s request for emergency meeting is likely to be rejected.

Drops below $29/barrel

Prices fell below USD 29/barrel after failing to take out the hourly 50-MA located at USD 29.17. The futures hit a low of USD 28.30/barrel (lowest since 2003) before a technical correction helped prices take back losses.

The rumors of an emergency OPEC meeting regularly hit the wires after prices fell to 13-yr lows. However, the latest report from Reuters states a low possibility of such a meeting. Consequently, the recovery lost momentum.

The oil traders now await the US oil inventory report from the private group American Petroleum Institute (API).

WTI Oil Technical Levels

The futures currently trade at USD 28.80/barrel. The immediate resistance is seen at 29.17 (hourly 50-MA), above which the gains could be extended to 29.63 (hourly 100-MA). On the other hand, a break below 28.30 (daily low), under which prices could test the psychological support of 28.00.
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Source:: FX Street