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15 Jan 2016
WTI Oil threatens to drop below $30
FXStreet (Mumbai) - WTI oil prices hit a session low of USD 30.03/barrel as market braces for more Iranian oil.
Third weekly loss
The prices are heading towards a third weekly loss. The futures are down 8% this week. The concerns of slowdown in China and excess supplies triggered a sell-off that took prices down by 21% from 2016 high.
The slide seen today was triggered by reports that Western sanctions on Iran are expected to be lifted next week, potentially paving the way for more crude oil exports from the country.
WTI Oil Technical Levels
A break below $30 could see the futures re-test 28.78 (Feb 2004 low). On the other hand, the futures could test 32.63 (10-DMA) if the immediate resistance at 30.71 (5-DMA) is taken out.
Third weekly loss
The prices are heading towards a third weekly loss. The futures are down 8% this week. The concerns of slowdown in China and excess supplies triggered a sell-off that took prices down by 21% from 2016 high.
The slide seen today was triggered by reports that Western sanctions on Iran are expected to be lifted next week, potentially paving the way for more crude oil exports from the country.
WTI Oil Technical Levels
A break below $30 could see the futures re-test 28.78 (Feb 2004 low). On the other hand, the futures could test 32.63 (10-DMA) if the immediate resistance at 30.71 (5-DMA) is taken out.