1 Dec 2014
Hedge funds expected action from OPEC
FXStreet (Mumbai) - The latest U.S. Commodity Futures Trading Commission(CFTC) data revealed that the major players in the oil markets were expecting the Organization of the Petroleum Exporting Countries (OPEC) group to announce a production cut.
As per the CFTC data, hedge funds and other oil traders increased bullish bets on Brent Crude ahead of the OPEC meet, wherein the group decided to keep production levels unchanged at 3 million barrels per day. Money manager’s bullish bets rose 7.9% to 65,973 contracts in the week ended Nov. 25. The rise in bullish bets also explains a more than 12% fall in Crude prices witnesses since the OPEC meet concluded last Thursday.
Brent Crude and WTI Crude prices have recovered ahead of the US session to trade on a flat note. Brent Crude for January delivery clocked a low of USD 67.57/barrel before rising to the current price of USD 70.14/barrel. On similar lines, WTI crude for January recovered from a low of USD 63.75/barrel to trade at the current price of USD 66.29/barrel. Crude prices may see more correction if the US Markit and ISM data highlight strength in the manufacturing activity.
WTI Crude Technical Levels
The prices have an immediate resistance located at 66.88, above which gains could be extended to 67.78 (5-DMA) levels. Meanwhile, support is seen at 65.68 (hourly 5-SMA), and 64.78 levels.
As per the CFTC data, hedge funds and other oil traders increased bullish bets on Brent Crude ahead of the OPEC meet, wherein the group decided to keep production levels unchanged at 3 million barrels per day. Money manager’s bullish bets rose 7.9% to 65,973 contracts in the week ended Nov. 25. The rise in bullish bets also explains a more than 12% fall in Crude prices witnesses since the OPEC meet concluded last Thursday.
Brent Crude and WTI Crude prices have recovered ahead of the US session to trade on a flat note. Brent Crude for January delivery clocked a low of USD 67.57/barrel before rising to the current price of USD 70.14/barrel. On similar lines, WTI crude for January recovered from a low of USD 63.75/barrel to trade at the current price of USD 66.29/barrel. Crude prices may see more correction if the US Markit and ISM data highlight strength in the manufacturing activity.
WTI Crude Technical Levels
The prices have an immediate resistance located at 66.88, above which gains could be extended to 67.78 (5-DMA) levels. Meanwhile, support is seen at 65.68 (hourly 5-SMA), and 64.78 levels.