WTI Crude nears 6-year low

FXStreet (Mumbai) - The WTI Crude fell below USD 45/barrel today nearing the level last seen in March 2009.

The February futures traded 2.89% lower at USD 44.74/barrel at the time of writing, compared to the previous session’s close at 46.07/barrel. The fresh wave of selling was triggered by the bearish short-term price forecasts published by investment bank Goldman Sachs. Citing rising global supplies, the bank cut its 2015 oil price forecast for WTI to USD 47.15/barrel, down from a previous forecast of USD 73.75/barrel. For the current quarter, the forecast was revised lower to USD 46/barrel, down from USD 75/barrel.

Markets await further information in the form of US inventory data released by the American Petroleum Institute (API) today. Meanwhile, the US government’s report on Wednesday could show crude stockpiles rose by 1.8 million barrels in the week ended January 9.

WTI Crude Technical Levels

The immediate support is seen at 44.60 (Feb 2005 low), under which losses could be extended to 43.83 (April 2009 low). Meanwhile, resistance is seen at 45.91 and 47.17 levels.

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