WTI Crude Falls As Dollar Rises, U.S. Inventories Expected to Rises – Outlook Cautious

WTI crude prices fell on Wednesday, weighed down by a rebound in the U.S. dollar from three-year lows hit last week and an expected rise in U.S. oil production.

U.S. West Texas Intermediate (WTI) crude futures were at $61.07 a barrel at 0446 GMT, down 72 cents, or 1.2 percent, from their last settlement. Brent crude futures fell 60 cents, or 0.9 percent, from their last close to $64.65 per barrel.

Traders said the declines were driven by a recovery in the dollar, which potentially hits fuel demand as it makes greenback-denominated oil imports more expensive for countries using other currencies.

The dollar index, which measures the greenback against a basket of six major currencies, rose for a second day on Wednesday, moving further away from the three-year lows reached last week.

The next set of weekly U.S. oil production data is due to be published by the Energy Information Administration (EIA) on Thursday after a one-day delay because of the President’s Day holiday on Monday.

On the technical charts, WTI crude is trading sideways and below the 9 day and the 20 day EMA. The RSI is at 45.25 and the MACD is below the signal line. The market is expected to negative for the day.

Trade suggestion:

Sell stop at 60.94, Take profit at 60.50, Stop loss at 61.10

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