Crude prices in the US remain weak despite having recovered slightly from the low of USD 51.89/barrel as sentiment remains weak after the International Energy Agency (IEA) warned that oil stocks shall continue to rise this year.
OECD stocks may rise to record highs
The IEA warned that oil stocks in the Organization for Economic Cooperation and Development may come close to the all-time high of 2.83 billion barrels in the middle of 2015. "Despite expectations of tightening balances by end-2015, downward market pressures may not have run their course just yet," the IEA said in a monthly report.
However, prices have recovered to some extent to trade above the 5-DMA located at USD 52.17/barrel. Moreover, the reaction to the IEA’s bearish forecasts has been restricted by falling rig count in the US. Crude prices also found support after the OPEC group reduced the non-OPEC supply forecasts.
WTI Crude Technical Levels
The futures currently trade at USD 52.24/barrel. The immediate support is seen at 52.17 (5-DMA), under which prices could fall to 51.63 levels. On the flip side, resistance is seen at 52.53 (Feb. 4th high) and 53.26 (Feb. 8th high).
OECD stocks may rise to record highs
The IEA warned that oil stocks in the Organization for Economic Cooperation and Development may come close to the all-time high of 2.83 billion barrels in the middle of 2015. "Despite expectations of tightening balances by end-2015, downward market pressures may not have run their course just yet," the IEA said in a monthly report.
However, prices have recovered to some extent to trade above the 5-DMA located at USD 52.17/barrel. Moreover, the reaction to the IEA’s bearish forecasts has been restricted by falling rig count in the US. Crude prices also found support after the OPEC group reduced the non-OPEC supply forecasts.
WTI Crude Technical Levels
The futures currently trade at USD 52.24/barrel. The immediate support is seen at 52.17 (5-DMA), under which prices could fall to 51.63 levels. On the flip side, resistance is seen at 52.53 (Feb. 4th high) and 53.26 (Feb. 8th high).
