WTI oil – selling stalls, sits above 38.2% Fibo

Selling in US oil came to a halt amid USD weakness post Fed, leaving the prices just above $41.87 (38.2% Fibo of Feb low – June high).

Trades above $42/barrel

Prices were last seen hovering around $42.05/barrel. Oil was sold heavily in the NY session on Wednesday after the US Department of energy (DOE) reported a surprise build in oil and gasoline inventories. Moreover, inventories are on the rise despite peak summer driving season.

Futures fell to a three-month low of $41.68/barrel before recovering to just above $42.00 amid dollar weakness post Fed rate decision.

WTI Technical Levels

The immediate hurdle is noted at $42.37 (July 26 low), above which the prices could target $43.20 (previous day’s high). On the other hand, a breakdown of support at $41.87 (38.2% Fibo of Feb low-June high) would expose $40.89 (April 19 low).