28 Apr 2015
WTI drops over 1% on rising crude reserves
FXStreet (Mumbai) - WTI oil futures on the Nymex drop sharply in the European morning, extending losses for the third consecutive session, as traders now turn their attention towards Wednesday’s EIA crude stock piles report which is expected to show another record high inventory count, rising for the 16th straight week.
WTI back on $56/ barrel
Currently, WTI trades nearly -1.32% lower at 56.24 levels, retreating from 56.74 highs. Crude prices edged lower amid expectations the upcoming weekly report could show another huge expansion in crude stockpiles, driving them to a fresh record. For the week ending April 24, markets estimate US crude stockpiles will increase by 2.5 million barrels.
Moreover, Saudi Arabia’s oil minister Ali al-Naimi’s comments also added to the bearish trend in oil prices. "Asian demand for oil remains strong and we are ready to supply whatever is required. Oil will retain its preeminent position and Saudi Arabia will remain the number one supplier."
Oil Technical Levels
WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.60 levels. Meanwhile, support is seen at 55 levels from here losses could be extended to 53.50 levels.
WTI back on $56/ barrel
Currently, WTI trades nearly -1.32% lower at 56.24 levels, retreating from 56.74 highs. Crude prices edged lower amid expectations the upcoming weekly report could show another huge expansion in crude stockpiles, driving them to a fresh record. For the week ending April 24, markets estimate US crude stockpiles will increase by 2.5 million barrels.
Moreover, Saudi Arabia’s oil minister Ali al-Naimi’s comments also added to the bearish trend in oil prices. "Asian demand for oil remains strong and we are ready to supply whatever is required. Oil will retain its preeminent position and Saudi Arabia will remain the number one supplier."
Oil Technical Levels
WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.60 levels. Meanwhile, support is seen at 55 levels from here losses could be extended to 53.50 levels.