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23 Jan 2015
Crude erases gains as new Saudi Monarch calms market nerves
FXStreet (Mumbai) - The Crude prices in the US erased gains after the crown Prince Salman, said that the kingdom will stay with current oil policies, while retaining Ali al-Naimi as the Kingdom’s oil minister.
WTI Crude for March delivery now trades 0.44% lower at USD 46.11/barrel. Earlier today, prices had hit a high of USD 47.75/barrel as markets speculated a possible shift in Saudi’s oil policies following the death of Saudi’s King Abdullah. However, these speculations did not last long after the crown Prince Salman vowed to maintain the same approach as his predecessors.
Consequently, the market has begun pricing-in the concerns of over supply highlighted once again by the weekly inventory data released in the US yesterday. Crude inventories rose by 10.1 million barrels in the week ended Jan. 16.; a four times larger increase than the expected increase of 2.5 million barrels. Moreover, at 387.9 million barrels, U.S. crude oil inventories “are at the highest level for this time of the year in at least the last 80 years,” the EIA said in the report.
WTI Crude Technical Levels
The immediate support is seen at 45.87, under which losses could be extended to 44.78 levels. Meanwhile, resistance is seen at 46.73 and 47.74 levels.
WTI Crude for March delivery now trades 0.44% lower at USD 46.11/barrel. Earlier today, prices had hit a high of USD 47.75/barrel as markets speculated a possible shift in Saudi’s oil policies following the death of Saudi’s King Abdullah. However, these speculations did not last long after the crown Prince Salman vowed to maintain the same approach as his predecessors.
Consequently, the market has begun pricing-in the concerns of over supply highlighted once again by the weekly inventory data released in the US yesterday. Crude inventories rose by 10.1 million barrels in the week ended Jan. 16.; a four times larger increase than the expected increase of 2.5 million barrels. Moreover, at 387.9 million barrels, U.S. crude oil inventories “are at the highest level for this time of the year in at least the last 80 years,” the EIA said in the report.
WTI Crude Technical Levels
The immediate support is seen at 45.87, under which losses could be extended to 44.78 levels. Meanwhile, resistance is seen at 46.73 and 47.74 levels.