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31 Dec 2014
Oil resumes downtrend, nears 5-1/2 year lows
FXStreet (Mumbai) - Both Crude oil benchmarks resumed their slide today, extending losses for five consecutive days and trades close to fresh five and a half year lows in the previous session.
Currently, Brent oil trades at USD 57.18/ barrel and WTI crude oil trades at USD 53.56/ barrel, losing -0.75% and -1.03% respectively on the day. WTI oil prices fell further today after industry group, the American Petroleum Institute (API) released US crude inventories data which showed an unexpected build in U.S. crude stocks. U.S. crude inventories rose by 760,000 barrels last week to 387.3 million, compared with markets’ expectations for a decrease of around 100,000 barrels, API data showed.
Moreover, news that the Obama administration took two long-awaited steps that could increase the amount of processed light crude that can be shipped under the 40-year-old ban on exports of most domestic crude did little to support oil prices as markets were left unimpressed because the measures were introduced during slack holiday season.
Investors now await US inventory data from the Energy Information Administration scheduled for release later in the day.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 53.89 (Today’s High), above which gains could be extended to 54.32 (Dec 30 High) levels. Meanwhile, support is seen at 52.70 (Dec 30 Low) levels from here losses could be extended to sub 52 levels.
Currently, Brent oil trades at USD 57.18/ barrel and WTI crude oil trades at USD 53.56/ barrel, losing -0.75% and -1.03% respectively on the day. WTI oil prices fell further today after industry group, the American Petroleum Institute (API) released US crude inventories data which showed an unexpected build in U.S. crude stocks. U.S. crude inventories rose by 760,000 barrels last week to 387.3 million, compared with markets’ expectations for a decrease of around 100,000 barrels, API data showed.
Moreover, news that the Obama administration took two long-awaited steps that could increase the amount of processed light crude that can be shipped under the 40-year-old ban on exports of most domestic crude did little to support oil prices as markets were left unimpressed because the measures were introduced during slack holiday season.
Investors now await US inventory data from the Energy Information Administration scheduled for release later in the day.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 53.89 (Today’s High), above which gains could be extended to 54.32 (Dec 30 High) levels. Meanwhile, support is seen at 52.70 (Dec 30 Low) levels from here losses could be extended to sub 52 levels.