WTI slumps below $46.00

By FXStreet FXStreet (Edinburgh) – The barrel of the American benchmark for the light crude oil is nose-diving around 7% and returning to the $46.00 neighbourhood on Tuesday.

WTI trims recent gains

Crude oil prices are snapping a positive 3-session streak, advancing more than 27% from multi-year lows around the $38.00 mark last week to yesterday’s tops in the boundaries of the critical $50.00 handle. Lower US output in July pus rumours that the OPEC could slow down its production have acted as the exclusive drivers behind the impressive upside.

However, today’s weaker than expected Chinese figures from the domestic manufacturing sector revived fears that the Chinese economy could be cooling down, impacting on the demand for the back gold.

Ahead in the week, today’s API report on crude oil inventories will precede tomorrow’s EIA information on stockpiles, while driller Baker Hughes will bring in data of US oil rigs count on Friday.

WTI levels to watch

At the moment WTI is down 6.57% at $46.01 facing the immediate support at $43.61 (low Aug.31) 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