WTI extends losses near $ 46, OPEC outlook weighs

FXStreet (Mumbai) - WTI oil on NYMEX traded in the red on Friday, extending its weakness from the previous session, as markets now weigh the latest comments from the OPEC while dust settles over the Fed decision.

WTI: Weekly rise in sight

Currently, WTI trades 1.10% lower at 46.40, finding some support near 64.20 region. US oil continued to lose ground this session as ongoing worries over global oil demand and rising crude stockpiles dampen investors’ sentiment.

Whilst the Fed decision of delaying the rate hike on the back of worries over global economic developments spooked the markets, weighing on riskier assets such as oil.

Further adding to the downside in the oil prices, sources at OPEC said on Thursday they expected oil prices to rise by no more than $5 a barrel a year to reach $80 by 2020. The oil cartel also said that prices of oil are unlikely to return above $100 per barrel until 2030-2040.

WTI Oil Technical Levels

WTI oil has an immediate resistance which stands at 47.71 levels above which gains could be extended to 48.42 levels. Meanwhile, support is seen 44.82 levels from here losses could be extended to 43.36 levels.