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28 Aug 2015
WTI: Rally extends to $ 43.50 – at fresh 2-week highs
FXStreet (Mumbai) - WTI oil on NYMEX keeps pushing higher on Friday after booking an over 10% rally yesterday, and is poised for the first weekly gain in eight weeks.
WTI extends above $ 43
Currently, WTI trades nearly 2% higher at 43.34, hovering close to fresh 2-week highs recorded at 43.46 levels. Oil prices rallied driven by a short-covering rally after the recent drop while production-halt news from Nigeria also further bolstered the uptrend in the black gold.
Analysts at ANZ wrote noted, "A short covering rally, led by crude oil pushed commodities higher across the board. Better than expected US GDP numbers was the main spark, although the force majeure on BP's exports from Nigeria extended the gains."
Royal Dutch Shell's Nigeria unit declared on Thursday force majeure on its Bonny Light crude oil exports after closing two key pipelines after a leak and oil theft.
Meanwhile, Venezuela asked OPEC on Thursday to hold an emergency meeting and also asked the oil cartel to consider some sort of coordination with non-OPEC Russia to talk about a strategy to halt the recent oil prices slump.
Later in the session, traders will focus on weekly data on the US rig count from oilfield services company Baker Hughes.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 44.48 levels above which gains could be extended to 46 levels. Meanwhile, support is seen at 42 levels from here losses could be extended to 38.95 levels.
WTI extends above $ 43
Currently, WTI trades nearly 2% higher at 43.34, hovering close to fresh 2-week highs recorded at 43.46 levels. Oil prices rallied driven by a short-covering rally after the recent drop while production-halt news from Nigeria also further bolstered the uptrend in the black gold.
Analysts at ANZ wrote noted, "A short covering rally, led by crude oil pushed commodities higher across the board. Better than expected US GDP numbers was the main spark, although the force majeure on BP's exports from Nigeria extended the gains."
Royal Dutch Shell's Nigeria unit declared on Thursday force majeure on its Bonny Light crude oil exports after closing two key pipelines after a leak and oil theft.
Meanwhile, Venezuela asked OPEC on Thursday to hold an emergency meeting and also asked the oil cartel to consider some sort of coordination with non-OPEC Russia to talk about a strategy to halt the recent oil prices slump.
Later in the session, traders will focus on weekly data on the US rig count from oilfield services company Baker Hughes.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 44.48 levels above which gains could be extended to 46 levels. Meanwhile, support is seen at 42 levels from here losses could be extended to 38.95 levels.