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23 Feb 2015
WTI ticks down on persistent oversupply concerns
FXStreet (Mumbai) - WTI oil futures on the Nymex erased previous gains and edged slightly lower in the European morning as concerns over oversupply continue to dampen investors’ sentiments.
Oil slips from 50.97 levels
Currently, WTI trades lower by -0.40% at USD 50.61/ barrel, close to daily lows previously posted at 50.38 levels. Crude capped its recovery and inched lower as record US crude inventories continued to weigh on the market sentiment, raising concerns of overwhelming crude supplies. Goldman Sachs stated in its recent note that oil production in the US is expected to reach 440,000 barrels per day by the fourth quarter this year, measured on an annual basis, based on the current rig count. Adding to further losses in oil prices, the number of US rigs drilling for oil fell by 37 to 1,019, the smallest drop in seven weeks, oilfield services company Baker Hughes said on Friday.
Earlier in the Asian trading, oil prices rebound on renewed optimism after Greece struck a deal with the Euro group securing the country a four-month loan extension.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 51 levels above which gains could be extended to 52.52 levels. Meanwhile, support is seen at 49.82 levels from here losses could be extended to 48.93 levels.
Oil slips from 50.97 levels
Currently, WTI trades lower by -0.40% at USD 50.61/ barrel, close to daily lows previously posted at 50.38 levels. Crude capped its recovery and inched lower as record US crude inventories continued to weigh on the market sentiment, raising concerns of overwhelming crude supplies. Goldman Sachs stated in its recent note that oil production in the US is expected to reach 440,000 barrels per day by the fourth quarter this year, measured on an annual basis, based on the current rig count. Adding to further losses in oil prices, the number of US rigs drilling for oil fell by 37 to 1,019, the smallest drop in seven weeks, oilfield services company Baker Hughes said on Friday.
Earlier in the Asian trading, oil prices rebound on renewed optimism after Greece struck a deal with the Euro group securing the country a four-month loan extension.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 51 levels above which gains could be extended to 52.52 levels. Meanwhile, support is seen at 49.82 levels from here losses could be extended to 48.93 levels.