Crude prices in the US gained almost 5% as a weak USD and spending cuts in oil industry overshadowed the concerns of supply glut.
WTI trades above USD 51/barrel
At the time of writing, WTI Crude march futures traded at USD 51.27/barrel. Crude prices received a boost from the weak US dollar, after a weak advance retail sales data and weekly jobless claims data pushed the greenback lower across the board. Moreover, the USD was already trading weak on account of a hawkish Bank of England inflation report released earlier today and the Bank of Japan’s shocking take on adverse effects of more monetary easing.
Meanwhile, concerns of excess supply appear to have taken a back seat today. The weekly US inventory data released yesterday showed crude stocks rose to a record weekly high last week. However, a weak USD is supporting gains in Crude prices at the moment.
WTI crude Technical Levels
The immediate resistance is seen at 51.73 (Jan. 15th high), above which gains could be extended to 52.10 (Feb. 5th high). On the flip side, a break below the support seen on the hourly chart at 50.51 could open doors for a re-test of 49.89 levels.
WTI trades above USD 51/barrel
At the time of writing, WTI Crude march futures traded at USD 51.27/barrel. Crude prices received a boost from the weak US dollar, after a weak advance retail sales data and weekly jobless claims data pushed the greenback lower across the board. Moreover, the USD was already trading weak on account of a hawkish Bank of England inflation report released earlier today and the Bank of Japan’s shocking take on adverse effects of more monetary easing.
Meanwhile, concerns of excess supply appear to have taken a back seat today. The weekly US inventory data released yesterday showed crude stocks rose to a record weekly high last week. However, a weak USD is supporting gains in Crude prices at the moment.
WTI crude Technical Levels
The immediate resistance is seen at 51.73 (Jan. 15th high), above which gains could be extended to 52.10 (Feb. 5th high). On the flip side, a break below the support seen on the hourly chart at 50.51 could open doors for a re-test of 49.89 levels.
