9 Mar 2015
WTI in a run for USD 50/barrel
FXStreet (Mumbai) - WTI oil futures on the Nymex steadied in the European morning, bringing a halt to the downslide seen in the previous session as a stronger US dollar reduced demand amid ongoing fears over the global supply glut.
Crude trades in a tight band above 49 levels
Currently, WTI trades almost flat at USD 49.56/ barrel, failing an attempt to break above USD 50 levels. Crude prices remains pressured by the US dollar that strengthened after Friday's jobs data, with markets predicting further falls due to oversupply. The recent comments from OPEC’s Secretary-General Abdalla El-Badri also failed to provide impetus to oil prices.
Moreover, US-Iran nuclear talks will be the focus this week. If a deal is reached and Iranian sanctions reduced, oil prices may fall further on expectations of more supply hitting the market.
However, any rally in the crude price is likely to be short-lived on concerns of oversupplies after inventory levels in the US sits at record high levels.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 50 levels above which gains could be extended to 52.49 levels. Meanwhile, support is seen at 49 levels from here losses could be extended to 47.84 levels.
Crude trades in a tight band above 49 levels
Currently, WTI trades almost flat at USD 49.56/ barrel, failing an attempt to break above USD 50 levels. Crude prices remains pressured by the US dollar that strengthened after Friday's jobs data, with markets predicting further falls due to oversupply. The recent comments from OPEC’s Secretary-General Abdalla El-Badri also failed to provide impetus to oil prices.
Moreover, US-Iran nuclear talks will be the focus this week. If a deal is reached and Iranian sanctions reduced, oil prices may fall further on expectations of more supply hitting the market.
However, any rally in the crude price is likely to be short-lived on concerns of oversupplies after inventory levels in the US sits at record high levels.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 50 levels above which gains could be extended to 52.49 levels. Meanwhile, support is seen at 49 levels from here losses could be extended to 47.84 levels.