8 Apr 2015
WTI crude falls 2%
FXStreet (Mumbai) - West Texas Intermediate (WTI) crude futures declined 2% on Wednesday on a larger-than-expected weekly increase in the crude inventories in the US. The record high output in March reported by Saudi Arabia further weighed over prices.
Bullish EIA forecasts ignored
The markets chose to focus on the rising inventory levels in the US and record high Saudi output, while ignoring the bullish forecasts from the Energy Information Administration (EIA). In its monthly report, the EIA raised forecasts for US and global demand growth and lowered forecasts for crude oil production growth in the US.
However, markets focused on the American Petroleum data released post market hours on Tuesday, which showed crude stocks rose 12.2 million barrels last week, blowing past the expectation of 3.4 million barrels.
Attention now shifts to the EIA's weekly inventory report will be released at 10:30 a.m. EDT on Wednesday.
WTI Crude Technical Levels
At the moment, WTI crude futures are trading at USD 52.78/barrel; down 2.23% for the day. The immediate resistance is seen at 53.58 (Feb. 15 high), above which gains could be extended to 54.09 (Feb. 17 high). On the flip side, a break below 52.17 (hourly 50-MA), could send prices lower to 51.15 levels.
Bullish EIA forecasts ignored
The markets chose to focus on the rising inventory levels in the US and record high Saudi output, while ignoring the bullish forecasts from the Energy Information Administration (EIA). In its monthly report, the EIA raised forecasts for US and global demand growth and lowered forecasts for crude oil production growth in the US.
However, markets focused on the American Petroleum data released post market hours on Tuesday, which showed crude stocks rose 12.2 million barrels last week, blowing past the expectation of 3.4 million barrels.
Attention now shifts to the EIA's weekly inventory report will be released at 10:30 a.m. EDT on Wednesday.
WTI Crude Technical Levels
At the moment, WTI crude futures are trading at USD 52.78/barrel; down 2.23% for the day. The immediate resistance is seen at 53.58 (Feb. 15 high), above which gains could be extended to 54.09 (Feb. 17 high). On the flip side, a break below 52.17 (hourly 50-MA), could send prices lower to 51.15 levels.