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16 Mar 2015
WTI extends losses below USD 47/barrel
FXStreet (Mumbai) - WTI oil futures on the Nymex extended its losing streak into the sixth straight session as ongoing concerns over excessive global supply; waning demand and a strengthening US dollar continue to weigh on prices.
WTI weighed by over supply worries
Currently, WTI trades -0.78% lower at USD 46.70/
barrel, moving away from close to six year lows reached at 45.88 in the previous session. Crude prices extended losses after "bearish comments from the International Energy Agency that the US might soon run out of empty tanks to store crude and suggestion that global supply was up 1.3 million barrels per day in February year-on-year at 94 million barrels weighed on sentiment," as noted by analysts at ANZ.
Crude oil is expected to remain pressured as the US dollar is expected to remain firm ahead of Wednesday night's US Fed policy meeting.
More specifically, markets will be watching to see if the FOMC drops the word 'patience' from its statement, with regards to how long the Fed is waiting to make its first move. A removal of the word could see the dollar spike even further, further suppressing oil prices.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 47.22 levels above which gains could be extended to 48.80 levels. Meanwhile, support is seen at 45.88 levels from here losses could be extended to 45 levels.
WTI weighed by over supply worries
Currently, WTI trades -0.78% lower at USD 46.70/
barrel, moving away from close to six year lows reached at 45.88 in the previous session. Crude prices extended losses after "bearish comments from the International Energy Agency that the US might soon run out of empty tanks to store crude and suggestion that global supply was up 1.3 million barrels per day in February year-on-year at 94 million barrels weighed on sentiment," as noted by analysts at ANZ.
Crude oil is expected to remain pressured as the US dollar is expected to remain firm ahead of Wednesday night's US Fed policy meeting.
More specifically, markets will be watching to see if the FOMC drops the word 'patience' from its statement, with regards to how long the Fed is waiting to make its first move. A removal of the word could see the dollar spike even further, further suppressing oil prices.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 47.22 levels above which gains could be extended to 48.80 levels. Meanwhile, support is seen at 45.88 levels from here losses could be extended to 45 levels.