6 Jan 2015
Oil bounces-back from 5-1/2 year lows, bearish trend persists
FXStreet (Mumbai) - Crude oil prices on both the sides of Atlantic rebounded from more than five year lows reached in the previous session as US oil price fell below the threshold of USD 50/ barrel for the first time since April 2009 in overnight trading.
Currently, Brent oil traded at USD 53.47/ barrel and WTI oil traded at 50.24, both gaining 0.87% and 0.39% respectively on the day. Crude oil prices reached fresh five and a half year in US trading on worries about a surplus of global supplies on one side and lacklustre demand on the other. A weak euro - currently at a nine-year low - may have also contributed to further oil losses as it reduces the purchasing power of euro holders for dollar-denominated oil.
Moreover, reports that Saudi Arabia made deep cuts to its monthly oil prices for European buyers may further weigh on the oil prices.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 55 levels above which gains could be extended to 56.30 (Jan 5 High) levels. Meanwhile, support is seen at 53 levels from here losses could be extended to sub 52.66 (Jan 5 Low) levels.
Currently, Brent oil traded at USD 53.47/ barrel and WTI oil traded at 50.24, both gaining 0.87% and 0.39% respectively on the day. Crude oil prices reached fresh five and a half year in US trading on worries about a surplus of global supplies on one side and lacklustre demand on the other. A weak euro - currently at a nine-year low - may have also contributed to further oil losses as it reduces the purchasing power of euro holders for dollar-denominated oil.
Moreover, reports that Saudi Arabia made deep cuts to its monthly oil prices for European buyers may further weigh on the oil prices.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 55 levels above which gains could be extended to 56.30 (Jan 5 High) levels. Meanwhile, support is seen at 53 levels from here losses could be extended to sub 52.66 (Jan 5 Low) levels.