Cautious tone persists after the Western strikes on Syria and amid bearish US drilling report. Will a weaker DXY help cushion the downside in oil prices? Find out what to expect on this 16 April WTI Crude Oil Price Technical Forecast.
16 April, GKFX – WTI (oil futures on NYMEX) is seen attempting a tepid recovery from just ahead of the $ 66 threshold, after having run into strong offers near $ 66.85 on the European open, as broad-based US dollar weakness offers some respite to the bulls.
Impact of geopolitical tensions between the Middle East & the US
The weakness around the higher-yielding black gold is mainly driven by the risk-averse markets conditions, resulted from the weekend’s US-led coordinated strikes on Syria’s three chemical weapons facilities in Syria, as the West retaliated for a suspected poison gas attack in Douma on April, 7th.
Moreover, Friday’s bearish US rigs count data published by energy services firm Baker Hughes, also exacerbated the pain in the barrel of WTI. The US energy companies added seven oil rigs drilling for new production in the week to April 13, bringing the total to 815, the highest since March 2015, Reuters reports.
Looking ahead, rising geopolitical tensions between the Middle East and the US will continue to drive the oil-price trends. Meanwhile, the US weekly crude supplies data and USD dynamics could also have a major bearing on the prices.
16 April WTI Crude Oil Price Technical Forecast
At $ 66.40, the next resistances are aligned at $ 66.86/96 (stiff resistances/ 5-DMA), $ 67.29 (daily pivot) and $ 67.55 (classic R1/ Fib R1). To the downside, supports are located at $ 66 (Apr 12 low), $ 65.15 (10-DMA/ Apr 11 low) and 64.50 (psychological levels).
This article 16 April WTI Crude Oil Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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