26 May 2015
WTI Crude oil futures tank more than 2%
FXStreet (Mumbai) - Crude oil prices in the US fell more than 2% on Tuesday on the back of a strong US dollar and prospects of revival in the US rig count.
WTI front month futures fell 2.19% to trade USD 58.41/barrel. Oil’s recovery from a six-year low in January has stalled this month amid speculation rising prices will encourage output from shale formation. The Baker Hughes data released on Friday showed US producers cut the number of rigs by just one last week.
Moreover, crude oil is being punished once again on increased speculation that OPEC will probably maintain its production target at a June 5 meeting.
WTI Crude Technical Levels
The futures currently trade at USD 58.52/barrel. A break below USD 50.00 could push the prices lower to USD 57.70 (23.6% Fib R of 42.02-62.54). On the flip side, a rise above USD 59.35 (200-DMA) could see the futures re-test their psychological level of USD 60.00.
WTI front month futures fell 2.19% to trade USD 58.41/barrel. Oil’s recovery from a six-year low in January has stalled this month amid speculation rising prices will encourage output from shale formation. The Baker Hughes data released on Friday showed US producers cut the number of rigs by just one last week.
Moreover, crude oil is being punished once again on increased speculation that OPEC will probably maintain its production target at a June 5 meeting.
WTI Crude Technical Levels
The futures currently trade at USD 58.52/barrel. A break below USD 50.00 could push the prices lower to USD 57.70 (23.6% Fib R of 42.02-62.54). On the flip side, a rise above USD 59.35 (200-DMA) could see the futures re-test their psychological level of USD 60.00.