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WTI mixed near $57, Middle East tensions eyed

FXStreet (Mumbai) - WTI oil futures on the Nymex remains subdued in early Europe, as traders took to profit-booking after the recent one-week long rally boosted by renewed conflict in Yemen that sparked worries over shipments from the Middle East region.

WTI back below $58

Currently, WTI trades nearly -0.24% lower at 57 levels, retreating from 57.26 highs. Crude prices trades modestly flat after as markets remain cautious at the start of the week after posting nearly 3% gain on the last week. Crude oil remains mixed as traders continue to eye the situation in Yemen while digesting the latest US rig count data.

The number of active US rigs drilling for oil fell by 31 to 703 in the week to April 24, the lowest level since October 2010, oilfield services company Baker Hughes said on Friday. That marked the 20th straight week of declines.

In Yemen, heavy fighting persists as Saudi Arabia continues with air strikes against Houthi militia forces in Aden, with no resolution in sight.

Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades dead flat at 97.07.

Oil Technical Levels

WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.60 levels. Meanwhile, support is seen at 55 levels from here losses could be extended to 53.50 levels.

Ten-year Treasury note bearish bets increased last week

The data released by the Commodity Futures Trading Commission (CFTC) showed speculators increased their overall bearish positions on the US ten-year Treasury note futures last week after reducing the same in the previous week.
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USD/JPY below 121.00 risks a drop towards 117.50 - Vladimir Mihaylov

Independent Analyst, Vladimir Mihaylov, sees downside risks for USD/JPY if the pair fails to move above 121.00 in the next 2 weeks.
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