WTI ends 4-day winning streak, drops to $ 37.50

By FXStreet FXStreet (Mumbai) – The US oil failed to sustain at two-week highs and weakened sharply on Monday, as traders unwound their long positions after the Christmas break.

WTI back below $ 38

Currently, WTI trades -1.61% lower at fresh session lows of 37.42, failing to resist 38 barrier. Oil prices brought a halt to its four consecutive sessions of gains and fell sharply this session, mirroring losses seen across the commodities space. Copper prices are down 2% on Comex while gold falls slightly by -0.30%.

Moreover, oil traders resorted to profit-taking after last week’s solid recovery in oil from multi-year lows on the back of easing over supply worries as reflected by a fall in the US inventories. Commercial stockpiles of crude oil in the US fell by 5.88 million barrels last week, the EIA report showed last Wednesday. Subsequently, futures for WTI and Brent both rallied more than 4%.

Meanwhile, amid lack of significant economic events due on the cards, focus now remains on the US stockpiles report from both EIA and API due to be published later this week.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 38 (round number) above which gains could be …read more

Source:: FX Street