WTI recovers the $45.00 handle

By FXStreet FXStreet (Edinburgh) – After nose-diving to area of $43.20, the barrel of West Texas Intermediate has managed to stage a strong rebound and is back to the vicinity of the $45.00 mark.

WTI supported near $43.00

The barrel of the American benchmark for the light crude oil has slumped to session lows after the EIA has reported that inventories have increased by nearly 4.7 million barrels in the week ended on August 21. However, WTI has quickly managed to leave the selling mood behind, gathering traction and recovering the $45 handle albeit still in the red territory.

Renewed jitters on the oil supply glut plus the usual unease regarding the Chinese economy continue to do the rounds amongst oil investors, who saw the barrel climb more than 25% in three consecutive sessions (Thursday to Monday).

WTI levels to watch

At the moment WTI is down 0.33% at $45.26 facing the immediate support at $43.21 (low Sep.2) ahead of $41.78 (low Aug.28) and finally $38.95 (low Aug.27). On the flip side, a break above $48.85 (high Sep.1) would aim for $49.03 (high Jul.31) and then $49.91 (high Jul.29).
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Source:: FX Street