WTI rebounds above $ 58

FXStreet (Mumbai) - WTI oil futures on the Nymex halted its downslide and bounced-back sharply in the late Asian session, on the back of a falling US dollar, correcting heavy gains backed by upbeat US jobs report.

WTI back above $ 58

Currently, WTI trades 0.52% higher at 58.44, reversing previous losses. Oil prices rebounds higher as the greenback weakened, but the upward moves were limited by supply glut worries.

A weaker US dollar helped oil to gain as it makes it cheaper for traders holding other currencies. The dollar index slid -0.21% to 95.01 on Tuesday.

Traders are still worried over the global supply glut that is keeping prices low and markets are pointing out that the period of low demand and high production could persist.

US crude reserves stood at 477 million barrels, near the highest levels in at least 80 years, the Energy Information Administration said last week.

Fresh stockpiles data will be released by the American Petroleum Institute later in the day, while the US government is scheduled to deliver its report on Wednesday.

Technical Levels

WTI oil has an immediate resistance which stands at 60 levels above which gains could be extended to 61.43 levels. Meanwhile, support is seen at 57 levels from here losses could be extended to 55.50 levels.

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