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14 May 2015
WTI supported at $ 60
FXStreet (Mumbai) - WTI oil futures on the Nymex extends losses and remains subdues in the early European trades as global oversupply concerns continue to weigh amid mixed cues from Energy Information Administration (EIA) weekly stockpiles report.
WTI weakness persists despite softer USD
Currently, WTI trades -0.34% lower at 60.33, hovering above 60 levels. Oil prices remained weak this morning following the latest supply growth report that revealed a fall in US crude reserves, but pointed to a still oversupplied global oil market.
US oil stockpiles declined 2.191 million barrels in the week to May 8, posting the second straight weekly fall, compared to the expected drop of just 500,000 million barrels, the EIA said on Wednesday. The week before, inventories had declined by 3.882 million barrels.
However, crude reserves in the US, currently at about 485 million barrels, are still nearly 90 million barrels higher than this time last year.
Meanwhile, the International Energy Agency (IEA) said on Wednesday that the battle between the OPEC and non-OPEC producers for market share has only just begun.
In the meantime, US shale-oil companies announced they are ready to bring oil rigs back into service after cutting their output for months, testing their ability to react smoothly to rising oil prices.
Technical Levels
WTI oil has an immediate resistance which stands at 62 levels above which gains could be extended to 63.50 levels. Meanwhile, support is seen at 58 levels from here losses could be extended to 56.50 levels.
WTI weakness persists despite softer USD
Currently, WTI trades -0.34% lower at 60.33, hovering above 60 levels. Oil prices remained weak this morning following the latest supply growth report that revealed a fall in US crude reserves, but pointed to a still oversupplied global oil market.
US oil stockpiles declined 2.191 million barrels in the week to May 8, posting the second straight weekly fall, compared to the expected drop of just 500,000 million barrels, the EIA said on Wednesday. The week before, inventories had declined by 3.882 million barrels.
However, crude reserves in the US, currently at about 485 million barrels, are still nearly 90 million barrels higher than this time last year.
Meanwhile, the International Energy Agency (IEA) said on Wednesday that the battle between the OPEC and non-OPEC producers for market share has only just begun.
In the meantime, US shale-oil companies announced they are ready to bring oil rigs back into service after cutting their output for months, testing their ability to react smoothly to rising oil prices.
Technical Levels
WTI oil has an immediate resistance which stands at 62 levels above which gains could be extended to 63.50 levels. Meanwhile, support is seen at 58 levels from here losses could be extended to 56.50 levels.