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10 Dec 2014
WTI Crude falls 4% after bearish inventory report
FXStreet (Mumbai) - Crude prices in the US extended decline after the weekly inventory report from the Energy Information Agency (EIA) underscored the already brewing concerns of excess supply from the US and other non-OPEC countries.
WTI Crude for January delivery now trades 4.03% lower at USD 61.25/barrel. Price have been hit hard since yesterday by the back-to-back bearish estimates from the EIA and the Organization of Petroleum Exporting Countries (OPEC) group. Moreover, the OPEC specifically revised its 2015 forecast of non-OPEC supply higher by 120,000 barrels a day. The group also mentioned weak global consumption in 2015.
Meanwhile, the weekly inventory data from the EIA further bolstered the concerns of excess supply. Crude inventory for the week ending December 5 gained 1.45 million barrels, compared to an expected decline of 2.6 million. The bearish EIA report also pushed Brent Crude down by 3.6% at USD 64.44/barrel.
WTI Crude Technical Levels
WTI Crude has an immediate support located 60.68 (May 2007 low), under which losses could be extended to 59.25 (March 2006 low). Meanwhile, resistance is seen at 62.78 and 63.24 levels.
WTI Crude for January delivery now trades 4.03% lower at USD 61.25/barrel. Price have been hit hard since yesterday by the back-to-back bearish estimates from the EIA and the Organization of Petroleum Exporting Countries (OPEC) group. Moreover, the OPEC specifically revised its 2015 forecast of non-OPEC supply higher by 120,000 barrels a day. The group also mentioned weak global consumption in 2015.
Meanwhile, the weekly inventory data from the EIA further bolstered the concerns of excess supply. Crude inventory for the week ending December 5 gained 1.45 million barrels, compared to an expected decline of 2.6 million. The bearish EIA report also pushed Brent Crude down by 3.6% at USD 64.44/barrel.
WTI Crude Technical Levels
WTI Crude has an immediate support located 60.68 (May 2007 low), under which losses could be extended to 59.25 (March 2006 low). Meanwhile, resistance is seen at 62.78 and 63.24 levels.