24 Mar 2015
WTI extends losses as Saudi output nears record highs
FXStreet (Mumbai) - WTI oil futures on the Nymex extended is downside momentum in the European morning, after Saudi Arabia said its output neared an all-time high, while factory activity in China slowed to an 11-month low in March also weigh on the markets.
WTI back on the USD 46 handle
Currently, WTI trades -1.25% lower at USD 46.86/ barrel, unable to sustain above 47 barrier. Crude prices extended its downward trajectory after reports over Saudi Arabia's oil output reaching all-time highs as well as update on China's factory activity, while the US dollar's moves also impacted trading sentiment.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, gained 0.22% to trade at 97.42, making the dollar-priced oil less expensive in other currencies and so more attractive for foreign investors.
In China, traders have been disappointed by the latest economic data from one of the world's top oil consumers as the nation's factory sector slipped back into contraction territory in March, with the PMI showing 49.2 points, down from 50.7 in February and missing estimates of 50.4.
Looking ahead, both the American Petroleum Institute (API) and the Energy Information Administration (EIA) are due to publish weekly updates on US crude stockpiles that have been rising for 10 straight weeks to reach new all-time highs. For the week ending March 20, analysts forecast a build-up of about 4.75 million barrels.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 47.50 levels above which gains could be extended to 50 levels. Meanwhile, support is seen at 46 levels from here losses could be extended to 45.33 levels.
WTI back on the USD 46 handle
Currently, WTI trades -1.25% lower at USD 46.86/ barrel, unable to sustain above 47 barrier. Crude prices extended its downward trajectory after reports over Saudi Arabia's oil output reaching all-time highs as well as update on China's factory activity, while the US dollar's moves also impacted trading sentiment.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, gained 0.22% to trade at 97.42, making the dollar-priced oil less expensive in other currencies and so more attractive for foreign investors.
In China, traders have been disappointed by the latest economic data from one of the world's top oil consumers as the nation's factory sector slipped back into contraction territory in March, with the PMI showing 49.2 points, down from 50.7 in February and missing estimates of 50.4.
Looking ahead, both the American Petroleum Institute (API) and the Energy Information Administration (EIA) are due to publish weekly updates on US crude stockpiles that have been rising for 10 straight weeks to reach new all-time highs. For the week ending March 20, analysts forecast a build-up of about 4.75 million barrels.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 47.50 levels above which gains could be extended to 50 levels. Meanwhile, support is seen at 46 levels from here losses could be extended to 45.33 levels.