Crude prices in the US eased from the high of USD 52.00/barrel, as concerns of the supply glut, coupled with little prospects of easing from China caps gains witnessed due to violence in Libya.
Market struggles to find a bottom
The high volatility seen since last week is likely to persist in the days ahead as the market struggles to find a bottom after a seventh month sell-off in Crude, analysts said. Many believe the rally will not last long as record-high US crude inventories have renewed fears of supply glut.
Furthermore, the prospects of more easing from the Chinese central bank are low after it cut the reserve requirement ratio earlier this week.
WTI Crude Technical Levels
The futures currently trade 1.65% higher at USD 51.31/barrel. The immediate support is located 50.96 (50-DMA), under which losses could be extended to 50.09 (hourly 50-SMA). Meanwhile, resistance is seen at 52.05 and 52.52 levels.
Market struggles to find a bottom
The high volatility seen since last week is likely to persist in the days ahead as the market struggles to find a bottom after a seventh month sell-off in Crude, analysts said. Many believe the rally will not last long as record-high US crude inventories have renewed fears of supply glut.
Furthermore, the prospects of more easing from the Chinese central bank are low after it cut the reserve requirement ratio earlier this week.
WTI Crude Technical Levels
The futures currently trade 1.65% higher at USD 51.31/barrel. The immediate support is located 50.96 (50-DMA), under which losses could be extended to 50.09 (hourly 50-SMA). Meanwhile, resistance is seen at 52.05 and 52.52 levels.
