27 Jan 2016
Oil settles at 2-week high
FXStreet (Córdoba) - Crude oil prices advanced on Wednesday, getting some help from the US cold winter and hopes producers might reach an agreement to cut output.
According to the Energy Information Administration US crude stockpiles rose by 8.4 million barrels in the week through Jan. 22, bringing the total in storage to 494.9 million barrels, the highest on record. :But data also showed a jump in weekly demand for products such as heating oil. Additionally, the recent bounce from record lows posted last week, triggered some profit taking underpinning the advance.
West Texas Intermediate crude for March rose 85 cents, or 2.7%, to settle at $32.33 a barrel on the New York Mercantile Exchange.
WTI technical view
“The daily chart is looking slightly better for bulls at the time being, given that the technical indicators have extended their bullish slopes around their mid-lines. Nevertheless, the underlying reasons for oil's slump are still present, meaning that the commodity can still resume its fall”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, and according to the 4 hours chart, the price is now above a bullish 20 SMA, but the technical indicators have lost upward strength right after crossing their mid-lines. Additionally, the pair stalled once again below the 50% retracement of its latest daily slide around 33.05, the level to break to confirm another leg higher”.
Support levels: 31.60 32.90 32.20. Resistance levels: 32.30 33.05 33.80.
According to the Energy Information Administration US crude stockpiles rose by 8.4 million barrels in the week through Jan. 22, bringing the total in storage to 494.9 million barrels, the highest on record. :But data also showed a jump in weekly demand for products such as heating oil. Additionally, the recent bounce from record lows posted last week, triggered some profit taking underpinning the advance.
West Texas Intermediate crude for March rose 85 cents, or 2.7%, to settle at $32.33 a barrel on the New York Mercantile Exchange.
WTI technical view
“The daily chart is looking slightly better for bulls at the time being, given that the technical indicators have extended their bullish slopes around their mid-lines. Nevertheless, the underlying reasons for oil's slump are still present, meaning that the commodity can still resume its fall”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, and according to the 4 hours chart, the price is now above a bullish 20 SMA, but the technical indicators have lost upward strength right after crossing their mid-lines. Additionally, the pair stalled once again below the 50% retracement of its latest daily slide around 33.05, the level to break to confirm another leg higher”.
Support levels: 31.60 32.90 32.20. Resistance levels: 32.30 33.05 33.80.