13 Feb 2015
WTI Crude hits session high of USD 52.23
FXStreet (Mumbai) - Crude prices in the US extended gains in the previous session to hit a high of USD 52.23/barrel on sustained weakness in the US dollar.
Concerns of supply glut take a back seat
The markets continue to price-in a fall in rig counts in the US and an expected decline in the industry investment after the sharp fall seen in 2014. A gentle reminder from the International Energy Agency earlier this week regarding the demand-supply imbalance was ignored by the markets.
Furthermore, a weak US dollar helped the bulls push the Crude prices above USD 52.00/barrel today. A strong German GDP data released earlier today could only add to the bullish momentum. However, the bulls seem to have exhausted as the prices eased-off slightly to USD 51.92/barrel.
WTI Crude Technical Levels
The immediate support is seen at 51.18 (10-DMA), under which losses could be extended to 50.32 (50-DMA) levels. On the flip side, resistance is seen at 52.23 and 52.51 levels.
Concerns of supply glut take a back seat
The markets continue to price-in a fall in rig counts in the US and an expected decline in the industry investment after the sharp fall seen in 2014. A gentle reminder from the International Energy Agency earlier this week regarding the demand-supply imbalance was ignored by the markets.
Furthermore, a weak US dollar helped the bulls push the Crude prices above USD 52.00/barrel today. A strong German GDP data released earlier today could only add to the bullish momentum. However, the bulls seem to have exhausted as the prices eased-off slightly to USD 51.92/barrel.
WTI Crude Technical Levels
The immediate support is seen at 51.18 (10-DMA), under which losses could be extended to 50.32 (50-DMA) levels. On the flip side, resistance is seen at 52.23 and 52.51 levels.