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7 Jan 2015
Brent Oil trades close to May 2009 lows, tests USD 50
FXStreet (Mumbai) - Crude oil benchmark from the UK extended its downtrend and traded close to fresh five and a half year lows reached in the previous session at USD 50.52/barrel, witnessing a fall of nearly 9% in the last two sessions.
Currently, Brent oil traded at USD 50.91/ barrel, down -0.52% on the day, after having posted day’s high at 51.26 levels. Crude oil prices reached fresh five and a half year in US trading reacting to Saudi Arabia's King Abdullah speech, which he stated that the country would deal with the challenge posed by lower oil prices "with a firm will"; giving no signs the No. 1 crude exporter will cut supplies.
A continued slid in euro versus the greenback - 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.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 51.26 levels above which gains could be extended to 53 levels. Meanwhile, support is seen at 50 levels from here losses could be extended to sub 47.26 levels.
Currently, Brent oil traded at USD 50.91/ barrel, down -0.52% on the day, after having posted day’s high at 51.26 levels. Crude oil prices reached fresh five and a half year in US trading reacting to Saudi Arabia's King Abdullah speech, which he stated that the country would deal with the challenge posed by lower oil prices "with a firm will"; giving no signs the No. 1 crude exporter will cut supplies.
A continued slid in euro versus the greenback - 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.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 51.26 levels above which gains could be extended to 53 levels. Meanwhile, support is seen at 50 levels from here losses could be extended to sub 47.26 levels.