WTI Fundamental Analysis


Attention now turns towards this week’s US crude inventory data from the US for fresh direction on the commodity. What else does 8 January WTI Fundamental Analysis disclose?

8 January, GKFX– WTI (oil futures on NYMEX) is seen consolidating the recent upmove, as the bulls gather pace for a sustained move above the $ 62 mark ahead of the weekly US crude stockpiles data release.

8 January WTI Fundamental Analysis

  • USD rebound caps the upside.
  • A drop in the US rigs count underpins.
  • Weekly US crude supplies data eyed.

WTI capped by key resistance near $ 61.70

The barrel of WTI made several attempts to take on the recovery beyond $ 61.70 levels, the confluence zone of 5-DMA and daily pivot, but in vain, as the USD bulls remain in command, capping the upside in the USD-sensitive oil. A stronger US dollar makes the USD-denominated oil more expensive for the holders in foreign currencies.

However, the sentiment around the black gold remains underpinned by falling US crude inventories and a slight decline in the US rigs count for new production, which fell by five in the week to January 5, to 742, according to data from oil services firm Baker Hughes. Last Wednesday, the US commercial crude inventories fell by 7.4 million barrels in the week to Dec. 29, to 424.46 million barrels, the EIA report showed.

Attention now turns towards this week’s US crude inventory data from the US for fresh direction on the commodity. At the time of writing, WTI trades flat at $ 61.42 while Brent trades -0.22% weaker at $ 67.47.

WTI Technical Levels

The resistances are aligned at $62.20 (2-1/2 year tops) ahead of $62.58 (May 2015 high) and $63 (round figure). On the downside, supports are located at $61 (key support), $60.87 (10-DMA) and $60.00 (key psychological support).

Disclaimer

This article “8 January WTI Fundamental Analysis” 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.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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