7 Apr 2015
WTI back in red below USD 52
FXStreet (Mumbai) - WTI oil futures on the Nymex edged lower in the European morning, snapping its uptrend seen in the previous session on a bout of profit taking after the recent rally. While Goldman Sachs forecasts released yesterday continue to weigh on oil prices.
WTI slips below USD 52/ barrel
Currently, WTI trades nearly -0.65% lower at 51.79, pulling away from fresh two weeks highs reached yesterday. Crude prices dropped after Goldman Sachs predicted low prices in the coming months, while traders continue to assess the possibility of Iranian crude flooding the market.
"Prices need to remain low in coming months to achieve a sufficient and sustainable slowdown in US production growth," analysts at Goldman Sachs said in a note late on Monday.
"The outlook for US production in 2016 in turn leaves risk to our USD65 per barrel forecast as skewed to the downside," "any meaningful price recovery on evidence of declining production and US crude inventories would further undermine the US rebalancing process," analysts added.
Moreover, a broadly stronger US dollar with the DXY rising to the tune of 0.13% also drags oil prices down.
Later on Tuesday, the American Petroleum Institute will report the weekly data on US crude oil inventories for the past week; while the Energy Information Administration is due to show its numbers on Wednesday.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 52 levels above which gains could be extended to 52.50 levels. Meanwhile, support is seen at 49 levels from here losses could be extended to 48.21 levels.
WTI slips below USD 52/ barrel
Currently, WTI trades nearly -0.65% lower at 51.79, pulling away from fresh two weeks highs reached yesterday. Crude prices dropped after Goldman Sachs predicted low prices in the coming months, while traders continue to assess the possibility of Iranian crude flooding the market.
"Prices need to remain low in coming months to achieve a sufficient and sustainable slowdown in US production growth," analysts at Goldman Sachs said in a note late on Monday.
"The outlook for US production in 2016 in turn leaves risk to our USD65 per barrel forecast as skewed to the downside," "any meaningful price recovery on evidence of declining production and US crude inventories would further undermine the US rebalancing process," analysts added.
Moreover, a broadly stronger US dollar with the DXY rising to the tune of 0.13% also drags oil prices down.
Later on Tuesday, the American Petroleum Institute will report the weekly data on US crude oil inventories for the past week; while the Energy Information Administration is due to show its numbers on Wednesday.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 52 levels above which gains could be extended to 52.50 levels. Meanwhile, support is seen at 49 levels from here losses could be extended to 48.21 levels.