Oil futures on NYMEX rebounded from the weak Chinese PMI data induced slump and rallied as investors now turned their focus on decline in US oil drilling.
WTI eyes USD 50 and Brent hover around USD 55
Currently, WTI oil trades 3.26% higher at USD 49.82/ barrel and Brent trades 3.52% higher at USD 54.92/ barrel. Crude oil prices rallied in the European session as investors moved past bearish Chinese data and news of a U.S. refinery strike. Meanwhile, reports that a record weekly drop in the number of U.S. oil rigs employed, down 24% from its October peak raised concerns over lower production. This sparked the rally in crude prices.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 55.80 levels above which gains could be extended to 57 levels. Meanwhile, support is seen at 53 levels from here losses could be extended to sub 51.40 levels.
WTI eyes USD 50 and Brent hover around USD 55
Currently, WTI oil trades 3.26% higher at USD 49.82/ barrel and Brent trades 3.52% higher at USD 54.92/ barrel. Crude oil prices rallied in the European session as investors moved past bearish Chinese data and news of a U.S. refinery strike. Meanwhile, reports that a record weekly drop in the number of U.S. oil rigs employed, down 24% from its October peak raised concerns over lower production. This sparked the rally in crude prices.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 55.80 levels above which gains could be extended to 57 levels. Meanwhile, support is seen at 53 levels from here losses could be extended to sub 51.40 levels.
