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23 Feb 2015
WTI Crude trades below USD 50/barrel
FXStreet (Mumbai) - Crude oil prices in the US weakened to trade well below USD 50/barrel as supply concerns resurfaced after the data released in the last week showed inventories at record high in the US.
US oil production growth is expected to reach 440,000 barrels per day by the fourth quarter of 2015 compared with a year before, based on the current rig count, Goldman said in a note. Analysts said a US cold spell could also prevent crude prices from rising further.
Meanwhile, the strong US dollar is also weighing over Crude prices. Oil is also under pressure as the biggest strike in the history of oil refinery workers since the 1980s expanded by three more refineries to 12 refineries. Any disruptions at these refineries would seriously curb demand for Crude.
Another bearish development is that the biggest oil field in Libya, located in Sarir, commenced operations on Sunday after it was blown up by an unidentified extremists week ago.
WTI Crude Technical Levels
The April futures have an immediate resistance at 50.37 (Jan. 6 high), above which gains could be extended to the daily high of 50.98. On the flip side, support is seen at 48.68, under which losses could be extended to 48.20 (Feb. 5 low).
US oil production growth is expected to reach 440,000 barrels per day by the fourth quarter of 2015 compared with a year before, based on the current rig count, Goldman said in a note. Analysts said a US cold spell could also prevent crude prices from rising further.
Meanwhile, the strong US dollar is also weighing over Crude prices. Oil is also under pressure as the biggest strike in the history of oil refinery workers since the 1980s expanded by three more refineries to 12 refineries. Any disruptions at these refineries would seriously curb demand for Crude.
Another bearish development is that the biggest oil field in Libya, located in Sarir, commenced operations on Sunday after it was blown up by an unidentified extremists week ago.
WTI Crude Technical Levels
The April futures have an immediate resistance at 50.37 (Jan. 6 high), above which gains could be extended to the daily high of 50.98. On the flip side, support is seen at 48.68, under which losses could be extended to 48.20 (Feb. 5 low).