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Crude gains on weak US dollar

FXStreet (Mumbai) - Crude prices in the US gained strength as the USD weakened sharply post the release of the dismal Advance retail sales data in the US.

WTI Crude for February delivery traded 0.37% higher at USD 46.06/barrel. Prices gained 1% at one point of time as the US dollar weakened across the board. The USD index dropped to 91.81, before recovering to trade 0.25% lower for the day at 92.21.

Meanwhile, Crude trimmed gains after the data showed oil supplies in the US rose more than expected. The US Energy information Administration (EIA) said in its weekly report that oil inventories rose by 5.4 million barrels in the week ended January 9, compared to expectations for an increase of 0.5 million barrels. The bearish supply report is likely to cap gains arising out of weakness in the US dollar.

WTI Crude Technical Levels

The immediate resistance is seen at 46.79, above which gains could be extended to 47.41 levels. Meanwhile, support is seen at 45.98 and 45.23 levels on the hourly chart.

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