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26 Feb 2015
WTI challenges lows around $49.20
FXStreet (Edinburgh) - The price of the American benchmark for the light crude oil is sharply lower on Thursday, testing the lower bound of the intraday range in the $49.20/10 band.
WTI weaker on USD re-emergence
Crude oil is eroding yesterday’s strong gains and returning below the critical $50.00 barrier following a renewed bud tone around the US dollar. Consumer prices and durable good orders in the US economy surprised traders to the upside during January, giving extra oxygen to the greenback and adding to the slump in oil prices. In the meantime, concerns regarding an excess supply in the US remains unabated, somehow limiting any upside attempts.
Collaborating with the selling mood, the weekly report on crude oil inventories by the Energy Information Administration (EIA) showed an increment of 8.4 million/barrels in the week ended on February 20th, totalizing 434.1 million/barrels, the highest level for this time of the year in the last 8 decades. Next of relevance will be tomorrow’s weekly report on rigs in use in the US tracked by driller Backer Hughes.
WTI levels to watch
The barrel of WTI is now retreating 3.51% at $49.17 and a breach of $48.20 (low Feb.5) would expose $47.46 (low Feb.2) and finally $45.07 (low Jan.30). On the upside, the initial up barrier lines up at 51.22 (high Feb.25) ahead of $52.72 (high Feb.19) and then $54.32 (high Feb.17).
WTI weaker on USD re-emergence
Crude oil is eroding yesterday’s strong gains and returning below the critical $50.00 barrier following a renewed bud tone around the US dollar. Consumer prices and durable good orders in the US economy surprised traders to the upside during January, giving extra oxygen to the greenback and adding to the slump in oil prices. In the meantime, concerns regarding an excess supply in the US remains unabated, somehow limiting any upside attempts.
Collaborating with the selling mood, the weekly report on crude oil inventories by the Energy Information Administration (EIA) showed an increment of 8.4 million/barrels in the week ended on February 20th, totalizing 434.1 million/barrels, the highest level for this time of the year in the last 8 decades. Next of relevance will be tomorrow’s weekly report on rigs in use in the US tracked by driller Backer Hughes.
WTI levels to watch
The barrel of WTI is now retreating 3.51% at $49.17 and a breach of $48.20 (low Feb.5) would expose $47.46 (low Feb.2) and finally $45.07 (low Jan.30). On the upside, the initial up barrier lines up at 51.22 (high Feb.25) ahead of $52.72 (high Feb.19) and then $54.32 (high Feb.17).