Back
8 Jan 2015
Crude sell-off pauses on fall in US inventories
FXStreet (Mumbai) - Crude prices in the US advanced today, after closing higher in the previous session following a surprise drop in the weekly inventory levels reported by Energy Information agency (EIA) in the US.
WTI Crude for February delivery currently trades 0.37% higher at USD 48.83/barrel, compared to the previous session’s at USD 48.65/barrel. Prices clocked a high of USD 49.61 earlier today, before moving slightly lower. The commodity snapped four day losing streak yesterday EIA said U.S. crude inventories fell by just over 3 million barrels last week, versus analysts' expectations for a build of 880,000 barrels. Analysts also believe an upbeat ADP jobs report in the US released yesterday helped oil gain strength. However, the overall sentiment stays bearish on concerns of supply glut. Plus, a strong US dollar does little to aid the recovery in Crude prices.
WTI Crude Technical Levels
The immediate resistance is seen at 49.61 (5-DMA), above which gains could be extended to hourly chart resistance at 50.34 levels. Meanwhile, support is seen at 48.37 (50-hourly SMA) and 47.53 levels.
WTI Crude for February delivery currently trades 0.37% higher at USD 48.83/barrel, compared to the previous session’s at USD 48.65/barrel. Prices clocked a high of USD 49.61 earlier today, before moving slightly lower. The commodity snapped four day losing streak yesterday EIA said U.S. crude inventories fell by just over 3 million barrels last week, versus analysts' expectations for a build of 880,000 barrels. Analysts also believe an upbeat ADP jobs report in the US released yesterday helped oil gain strength. However, the overall sentiment stays bearish on concerns of supply glut. Plus, a strong US dollar does little to aid the recovery in Crude prices.
WTI Crude Technical Levels
The immediate resistance is seen at 49.61 (5-DMA), above which gains could be extended to hourly chart resistance at 50.34 levels. Meanwhile, support is seen at 48.37 (50-hourly SMA) and 47.53 levels.