WTI: Recovery remains capped near $ 65 amid rising US supplies
- Global growth concerns and rising supply weigh down on the prices.
- Risks remain to the downside, $ 64.50 is the key level to beat for the bears.
WTI (oil futures on NYMEX) makes another attempt to take on the recovery above the 65 handle, having found strong bids near $ 64.75 so far this Thursday.
Despite the recovery attempt, the barrel of WTI remains within a striking distance of the eleven-week lows reached at $ 64.72 last hour, as signs of rising US crude supplies combined with global growth concerns continue to undermine the sentiment around the commodity.
But, the bulls continue to fight hard amid broad-based US dollar, induced by the GBP-bounce on the Brexit deal optimism while Goldman Sachs affirmation of its oil-price forecast also helps keep the downside in check.
Looking ahead, it remains to be seen if the black gold can sustain the bounce, especially in light of Wednesday’s bearish US EIA crude stocks data and global economic slowdown fears. The US EIA data showed that the US crude oil inventories climbed for a sixth straight week.
WTI Technical Levels
Resistance: 65.50 (psychological level), 65.74 (Oct 23 low), 66.00 (round number).
Support: 64.50 (key support), 64.00 (round number), 63.59 (June low).