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4 Dec 2014
Crude remains under pressure as Saudi expect prices to stabilize around USD 60.00
FXStreet (Mumbai) - The recovery in the Brent Crude prices stalled after the de facto leader of the Organization of Petroleum Exporting Countries (OPEC) said prices could stabilize around USD 60.00/barrel.
Brent Crude for January delivery is trading marginally higher at USD 70.19/barrel, although the commodity has erased substantial gains witnessed on Monday. Prices remain under pressure as the statement from Saudi is indicative of the fact that supply cuts are unlikely to come in the near-term. Moreover, both Saudi and other Gulf producers are likely to withstand even if the prices fall to USD 60/barrel. The Gulf states "don't have a price target and if prices drop further below USD 60, it won't be for a long time," a Gulf oil official said.
Brent Crude Technical Levels
Brent has an immediate support located at 69.50, under which prices may fall to 68.33 levels. Meanwhile, resistance is seen at 70.58 and 71.14 levels.
Brent Crude for January delivery is trading marginally higher at USD 70.19/barrel, although the commodity has erased substantial gains witnessed on Monday. Prices remain under pressure as the statement from Saudi is indicative of the fact that supply cuts are unlikely to come in the near-term. Moreover, both Saudi and other Gulf producers are likely to withstand even if the prices fall to USD 60/barrel. The Gulf states "don't have a price target and if prices drop further below USD 60, it won't be for a long time," a Gulf oil official said.
Brent Crude Technical Levels
Brent has an immediate support located at 69.50, under which prices may fall to 68.33 levels. Meanwhile, resistance is seen at 70.58 and 71.14 levels.