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20 Apr 2015
Oil dips on a strong dollar and surging Saudi production
FXStreet (Mumbai) - Brent Crude retreated on Monday on signs of strength in the US dollar and surging Saudi production as pointed out by Oil Minister Ali al-Naimi.
We will always be happy to supply to our customers with what they want – al-Naimi
Crude prices came under pressure after Saudi Oil minister indicated readiness to produce more in case the demand continues to rise. "I have said many times we will always be happy to supply to our customers with what they want. Now they want 10 million," he said. Production in the world's biggest crude exporter would stay near record peaks around 10 million bpd in April, he added further.
Meanwhile, the US dollar index strengthened 0.43% to 98.04 levels, thereby pushing Crude prices lower.
Brent Crude Technical Levels
Brent futures currently trade at USD 62.58/barrel. The immediate resistance is seen at 63.30 (5-DMA), above which gains could be extended to the daily high of 64.29. On the flip side, a break below 61.50 could push the prices lower to 60.58 (10-DMA).
We will always be happy to supply to our customers with what they want – al-Naimi
Crude prices came under pressure after Saudi Oil minister indicated readiness to produce more in case the demand continues to rise. "I have said many times we will always be happy to supply to our customers with what they want. Now they want 10 million," he said. Production in the world's biggest crude exporter would stay near record peaks around 10 million bpd in April, he added further.
Meanwhile, the US dollar index strengthened 0.43% to 98.04 levels, thereby pushing Crude prices lower.
Brent Crude Technical Levels
Brent futures currently trade at USD 62.58/barrel. The immediate resistance is seen at 63.30 (5-DMA), above which gains could be extended to the daily high of 64.29. On the flip side, a break below 61.50 could push the prices lower to 60.58 (10-DMA).