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15 Dec 2014
Oil prices rebound from 5-1/2 year lows
FXStreet (Mumbai) - Both Crude oil benchmarks recovered in the mid-Asian trading after steep losses witnessed in the last week, as investors sought to close their short positions ahead of a new trading week.
Currently, Brent oil trades at USD 62.87/ barrel and WTI crude oil trades at USD 58.64/ barrel, both gaining 1.77% and 0.97% respectively. Oil prices plummeted about to multi-year lows last week amid abundant global supply and soft demand, as the world's biggest producers refuse to cut production in what has become an extremely competitive market.
United Arab Emirates Energy Minister Suhail Mohamed Faraj Al Mazrouei said over the weekend that OPEC would hold production levels even if prices fell below USD 40/ barrel, and would wait three months before the cartel considered an emergency meeting.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 63.94 (Dec 12 High), above which gains could be extended to 64.51 (100-day SMA) levels. Meanwhile, support is seen at 62.50 (5-day SMA), below which losses could be extended to 62 levels.
Currently, Brent oil trades at USD 62.87/ barrel and WTI crude oil trades at USD 58.64/ barrel, both gaining 1.77% and 0.97% respectively. Oil prices plummeted about to multi-year lows last week amid abundant global supply and soft demand, as the world's biggest producers refuse to cut production in what has become an extremely competitive market.
United Arab Emirates Energy Minister Suhail Mohamed Faraj Al Mazrouei said over the weekend that OPEC would hold production levels even if prices fell below USD 40/ barrel, and would wait three months before the cartel considered an emergency meeting.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 63.94 (Dec 12 High), above which gains could be extended to 64.51 (100-day SMA) levels. Meanwhile, support is seen at 62.50 (5-day SMA), below which losses could be extended to 62 levels.