WTI extends losses for 7th straight session

By FXStreet FXStreet (Mumbai) – WTI oil fell further into losses on Tuesday, reaching fresh eight-week lows in mid-Asia, as investors’ fretted over the upcoming inventory report from the API later today.

WTI looks to test $ 43

Currently, WTI drops -1.15% to 43.48, facing rejection at hourly 20-SMA located at 43.92. Oil extends its losing streak into a seventh straight session on Tuesday as persisting oversupply worries continue to dampen investors’ sentiment, with yet another built-up likely to be seen in the crude reserves this week.

Moreover, markets continue to weigh the US rig count and the latest Goldman Sachs report, keeping prices undermined. Analysts at Goldman Sachs noted on Monday that product inventories were almost at maximum capacity and predicted sharp drop in crude prices ahead.

Looking ahead, traders will keep an eye on the API and EIA crude stockpiles report while Fed decision and China’s policy meeting will be also closely eyed.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 43.92 (h1 20-SMA) levels above which gains could be extended to 44.41 (5-DMA) 41.78 (Aug 28 Low).
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Source:: FX Street