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2 Mar 2015
WTI extends losses below USD 50/ barrel
FXStreet (Mumbai) - WTI oil futures on the Nymex extends its downslide in the European morning, booking a monthly rise in February, as looming concerns over rising supplies continue to hit investors’ sentiment.
Crude back below USD 50/barrel
Currently, WTI trades lower by -0.75% at USD 49.39/ barrel, pulling away from lows previously posted at 49.24 levels. Crude prices trades in a tight band and remains exposed to downside risk after the latest oil rig count data that showed the smallest decline since the start of the year, putting further pressure on the black gold prices. The number of US rigs drilling for oil fell 33 to 986 in the week to February 27, the smallest drop since the beginning of the year, oilfield services company Baker Hughes said on Friday.
However, the losses were cushioned by Chinese factory turnaround reports and also after People's Bank of China cut its benchmark interest rates for the second time since November to support the nation's slowing economy.
Meanwhile, traders are now awaiting a set of US economic data to be released this week to gauge demand prospects in the world's biggest crude oil consumer.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 50 levels above which gains could be extended to 51.22 levels. Meanwhile, support is seen at 48.50 levels from here losses could be extended to 47.84 levels.
Crude back below USD 50/barrel
Currently, WTI trades lower by -0.75% at USD 49.39/ barrel, pulling away from lows previously posted at 49.24 levels. Crude prices trades in a tight band and remains exposed to downside risk after the latest oil rig count data that showed the smallest decline since the start of the year, putting further pressure on the black gold prices. The number of US rigs drilling for oil fell 33 to 986 in the week to February 27, the smallest drop since the beginning of the year, oilfield services company Baker Hughes said on Friday.
However, the losses were cushioned by Chinese factory turnaround reports and also after People's Bank of China cut its benchmark interest rates for the second time since November to support the nation's slowing economy.
Meanwhile, traders are now awaiting a set of US economic data to be released this week to gauge demand prospects in the world's biggest crude oil consumer.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 50 levels above which gains could be extended to 51.22 levels. Meanwhile, support is seen at 48.50 levels from here losses could be extended to 47.84 levels.