23 Mar 2015
Oil drops as Saudi maintains its stance
FXStreet (Mumbai) - Oil prices retreated on Monday, with Brent dropping below USD 55.00/barrel after Saudi Arabia said it would consider cutting production only if other major non-OPEC producers choose to do so.
Brent Crude: sustains above hourly 100-MA
Brent Crude futures hit a low of USD 54.09/barrel,although prices managed to recover above the hourly 100-MA located at USD 54.33. Prices came under pressure as Saudi’s stance ensures that the supply glut situation is here to stay for quite some time. As per Barclays forecast, if OPEC production held near current levels of near 30 million barrels per day (bpd), the market surplus would expand from 0.9 million bpd to 1.3 million bpd.
Furthermore, signs of strength in the USD index at the onset of the European session also weighed over oil prices. However, the USD has given up its gains in the last hour or so, which has helped Brent recover from the low of USD 54.09/barrel to trade at the current level of USD 54.68/barrel.
Brent Crude Technical Levels
The immediate resistance is seen at 54.85, above which gains could be extended to 55.15 levels. On the flip side, support is seen at 54.33 (hourly 100-MA), under which prices could drop to 53.52 levels.
Brent Crude: sustains above hourly 100-MA
Brent Crude futures hit a low of USD 54.09/barrel,although prices managed to recover above the hourly 100-MA located at USD 54.33. Prices came under pressure as Saudi’s stance ensures that the supply glut situation is here to stay for quite some time. As per Barclays forecast, if OPEC production held near current levels of near 30 million barrels per day (bpd), the market surplus would expand from 0.9 million bpd to 1.3 million bpd.
Furthermore, signs of strength in the USD index at the onset of the European session also weighed over oil prices. However, the USD has given up its gains in the last hour or so, which has helped Brent recover from the low of USD 54.09/barrel to trade at the current level of USD 54.68/barrel.
Brent Crude Technical Levels
The immediate resistance is seen at 54.85, above which gains could be extended to 55.15 levels. On the flip side, support is seen at 54.33 (hourly 100-MA), under which prices could drop to 53.52 levels.