16 Jan 2015
Oil gains above 2.5% as IEA slashes non-OPEC supplies forecasts
FXStreet (Mumbai) - WTI oil futures on NYMEX rebounded over 2% after International Energy Agency (IEA) stated that prices could begin to recover in the second half of this year.
Currently, WTI oil traded at USD 47.44/ barrel, gaining 2.57% on the day. Crude oil prices rallied today after IEA said in its monthly report that prices may recover this year as it slashes its supplies forecasts from non-OPEC members.
"How low the market's floor will be is anybody's guess. But the sell-off is having an impact." "A price recovery - barring any major disruption - may not be imminent, but signs are mounting that the tide will turn." "A rebalancing may begin to occur in the second half of the year."
However, traders view any recovery in prices as short-lived as crude oil continues to stay below the USD 50/ barrel mark.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 48.19 levels above which gains could be extended to 48.91 levels. Meanwhile, support is seen at 47 levels from here losses could be extended to 45.60 levels.
Currently, WTI oil traded at USD 47.44/ barrel, gaining 2.57% on the day. Crude oil prices rallied today after IEA said in its monthly report that prices may recover this year as it slashes its supplies forecasts from non-OPEC members.
"How low the market's floor will be is anybody's guess. But the sell-off is having an impact." "A price recovery - barring any major disruption - may not be imminent, but signs are mounting that the tide will turn." "A rebalancing may begin to occur in the second half of the year."
However, traders view any recovery in prices as short-lived as crude oil continues to stay below the USD 50/ barrel mark.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 48.19 levels above which gains could be extended to 48.91 levels. Meanwhile, support is seen at 47 levels from here losses could be extended to 45.60 levels.