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22 Apr 2015
WTI drops over 1%, EIA Inventory report looms
FXStreet (Mumbai) - WTI oil futures on the Nymex extends its downslide for the third straight session and slipped over one percent in early European trades after Middle East tensions eased while a larger-than-expected rise in US stockpiles also dragged prices lower.
WTI on USD 55 handle
Currently, WTI trades nearly -1.50% lower at 55.83 levels, slipping from 56.53 highs. Crude prices declined today after a fresh report showed a bigger-than-forecast build up in US oil inventories, while Saudi Arabia ended a military campaign in Yemen, easing the conflict.
On Tuesday, the American Petroleum Institute said that commercial stockpiles in the US rose 5.5 million barrels last week, larger than the 2.5 million increase expected which weighed on oil prices.
Saudi Arabia said on Tuesday it was ending its near month-long military operation against Houthi rebels who seized large areas of Yemen. The move reduced tensions in the Middle East conflict and hampers demand for oil.
Traders now await EIA weekly US oil inventory report later in the day for further momentum on oil prices.
Oil Technical Levels
WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.60 levels. Meanwhile, support is seen at 55 levels from here losses could be extended to 53.50 levels.
WTI on USD 55 handle
Currently, WTI trades nearly -1.50% lower at 55.83 levels, slipping from 56.53 highs. Crude prices declined today after a fresh report showed a bigger-than-forecast build up in US oil inventories, while Saudi Arabia ended a military campaign in Yemen, easing the conflict.
On Tuesday, the American Petroleum Institute said that commercial stockpiles in the US rose 5.5 million barrels last week, larger than the 2.5 million increase expected which weighed on oil prices.
Saudi Arabia said on Tuesday it was ending its near month-long military operation against Houthi rebels who seized large areas of Yemen. The move reduced tensions in the Middle East conflict and hampers demand for oil.
Traders now await EIA weekly US oil inventory report later in the day for further momentum on oil prices.
Oil Technical Levels
WTI oil has an immediate resistance which stands at 58 levels above which gains could be extended to 58.60 levels. Meanwhile, support is seen at 55 levels from here losses could be extended to 53.50 levels.