August Nymex WTI prices are trading narrowly higher Tuesday after posting a positive close for the fourth straight session yesterday. WTI ended Monday’s session 1.5% higher to close at $88.43 a barrel, the highest close seen since May 29. Prices remain underpinned by growing expectation levels that the Federal Reserve may engage in another round of quantitative easing (QE) and also fears that current tensions with Iran may escalate to more intense levels. WTI prices have now overtaken the $10 mark on a rally that’s seen prices retrace from lows of $77.28 a barrel posted on 28 June. Prices now look set to test the $90 level on the upside, which also converges at the 38.2% retracement level of the steep decline from $110.54 on 1st Mar, to the lows of $77.28 previously mentioned on 28 June. WTI continues to rally despite the warnings sounded out by the IMF yesterday, where they lowered their forecast for global economic growth and also warned that the outlook could dim further if policymakers within the eurozone did not act with enough force to douse their region’s ongoing debt crisis. WTI last $88.45.
EasyForexNews Research Team