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WTI flattish below $ 60

FXStreet (Mumbai) - WTI oil futures on the Nymex extends its bearish momentum, although trades modestly flat on the early European morning amid a minor recovery seen in the greenback making oil expensive.

WTI set for weekly rise

Currently, WTI trades -0.28% lower at 59.71, falling back below 60 levels. Oil prices remained weak this morning, however are expected to end the week in the green zone, boosted by a weaker US dollar amid outlook for lower US crude output and improved global demand.

In its latest monthly report, oil cartel OPEC said that global oil demand will be stronger this year than previously expected. US crude oil output will ease from the 9.34 million barrels per day (bpd) expected for the second quarter to below 9.1 million over the next couple of quarters, before rebounding to 9.5 million in late 2016.

However, the upside remains capped as ongoing ample supply worries continue to weigh on the black gold. Crude reserves in the US, currently at about485 million barrels, are still nearly 90 million barrels higher than this time last year.

Technical Levels

WTI oil has an immediate resistance which stands at 62 levels above which gains could be extended to 63.50 levels. Meanwhile, support is seen at 58 levels from here losses could be extended to 56.50 levels.

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