23 Mar 2015
WTI drops nearly 1.50% on Saudi’s comments
FXStreet (Mumbai) - WTI oil futures on the Nymex extended losses in the European morning, bouncing-off near weekly high levels reached on Friday, as traders digested the latest comments from Saudi Arabia amid a slightly stronger US dollar.
WTI back below USD 46/barrel
Currently, WTI trades -1.45% lower at USD 45.90/ barrel, falling back on the 45 handle. Crude prices dived deeper in to red at the start of the week following comments from Saudi Arabia's oil minister, while the gains were extended as the greenback resumed its rally.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, gained 0.21% to trade at 98.25, making the dollar-priced oil less expensive in other currencies and so more attractive for foreign investors.
Traders digested the latest comments from Saudi Arabia's Oil Minister Ali al-Naimi over the weekend that the country would not unilaterally slash its oil production to defend prices.
Naimi quoted, “We tried, we held meetings and we did not succeed because countries (outside OPEC) were insisting that OPEC carry the burden and we refuse that OPEC bears the responsibility. The production of OPEC is 30% of the market, 70% from non-OPEC... Everybody is supposed to participate if we want to improve prices."
Moreover, Saudi Arabia's Governor to OPEC Mohammed al-Madi stated that it will be difficult for oil to reach USD100-USD120 per barrel again, also led to further losses in oil prices.
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 45 levels from here losses could be extended to 44.77 levels.
WTI back below USD 46/barrel
Currently, WTI trades -1.45% lower at USD 45.90/ barrel, falling back on the 45 handle. Crude prices dived deeper in to red at the start of the week following comments from Saudi Arabia's oil minister, while the gains were extended as the greenback resumed its rally.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, gained 0.21% to trade at 98.25, making the dollar-priced oil less expensive in other currencies and so more attractive for foreign investors.
Traders digested the latest comments from Saudi Arabia's Oil Minister Ali al-Naimi over the weekend that the country would not unilaterally slash its oil production to defend prices.
Naimi quoted, “We tried, we held meetings and we did not succeed because countries (outside OPEC) were insisting that OPEC carry the burden and we refuse that OPEC bears the responsibility. The production of OPEC is 30% of the market, 70% from non-OPEC... Everybody is supposed to participate if we want to improve prices."
Moreover, Saudi Arabia's Governor to OPEC Mohammed al-Madi stated that it will be difficult for oil to reach USD100-USD120 per barrel again, also led to further losses in oil prices.
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 45 levels from here losses could be extended to 44.77 levels.