22 Jan 2015
Brent oil rises on OPEC Secretary General’s comments
FXStreet (Mumbai) - Brent Crude prices recovered losses after the OPEC Secretary-General said the oil prices would rebound rather than drop to USD 20/barrel.
Brent March futures recovered from the low of USD 48.54, to trade 0.58% higher for the day at USD 49.32/barrel. Prices received support after Abdalla El-Badri, in an interview with Bloomberg Television at the World Economic Forum in Davos, said, “The price will not go to USD 20 or USD 25, I think the price will stay at where we are now.” He further added, “We have seen this before, prices coming down very fast and go up very slow. But prices will rebound.”
Moreover, prices have recovered despite forecasts that U.S. crude inventories may have increased for a second week, bolstering speculation that the global supply glut that spurred the market's collapse may persist.
Brent Crude Technical Levels
The immediate resistance is seen at 50.10, above which prices could test 51.00 levels. On the other hand, a break below 48.54, shall open doors for a re-test of 47.80 levels.
Brent March futures recovered from the low of USD 48.54, to trade 0.58% higher for the day at USD 49.32/barrel. Prices received support after Abdalla El-Badri, in an interview with Bloomberg Television at the World Economic Forum in Davos, said, “The price will not go to USD 20 or USD 25, I think the price will stay at where we are now.” He further added, “We have seen this before, prices coming down very fast and go up very slow. But prices will rebound.”
Moreover, prices have recovered despite forecasts that U.S. crude inventories may have increased for a second week, bolstering speculation that the global supply glut that spurred the market's collapse may persist.
Brent Crude Technical Levels
The immediate resistance is seen at 50.10, above which prices could test 51.00 levels. On the other hand, a break below 48.54, shall open doors for a re-test of 47.80 levels.