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8 Jan 2015
Oil rebounds on unexpected fall in stockpiles
FXStreet (Mumbai) - Both Crude oil benchmarks snapped its long run of losses and rebounded today from fresh six year lows reached in yesterday as traders closed short positions as markets opined that the slump in oil prices was overdone and oil prices may have found a bottom finally.
Currently, Brent oil traded at USD 51.68/ barrel and WTI oil traded at 49.13, both gaining over 1% on the day. Crude oil prices strengthened today on falling crude oil inventories, signalling a pick-up in buying interest at lower levels which may increase the demand for oil eventually. US crude oil inventories surprisingly fell by 3.1 million barrels to 382.4 million barrels in the week ending January 2, the biggest outflow since the week of November 28 as per data released by Energy Information Administration (EIA).
However, the overall trend remains bearish for oil prices amid soaring US production and Saudi Arabia’s unwillingness to slash production.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 52 levels above which gains could be extended to 53.60 levels. Meanwhile, support is seen at 50.52 levels from here losses could be extended to sub 49 levels.
Currently, Brent oil traded at USD 51.68/ barrel and WTI oil traded at 49.13, both gaining over 1% on the day. Crude oil prices strengthened today on falling crude oil inventories, signalling a pick-up in buying interest at lower levels which may increase the demand for oil eventually. US crude oil inventories surprisingly fell by 3.1 million barrels to 382.4 million barrels in the week ending January 2, the biggest outflow since the week of November 28 as per data released by Energy Information Administration (EIA).
However, the overall trend remains bearish for oil prices amid soaring US production and Saudi Arabia’s unwillingness to slash production.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 52 levels above which gains could be extended to 53.60 levels. Meanwhile, support is seen at 50.52 levels from here losses could be extended to sub 49 levels.