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26 Jan 2015
Oil trades near six-year lows
FXStreet (Mumbai) - Oil prices at both the sides of the Atlantic extended slide to trade near six-year lows after the new Saudi King assures no change in the Kingdom’s oil policy.
Prices had rallied last week as the death of King Abdullah triggered speculation of change in Saudi’s oil policy. However, the new King Salman moved to assuage fears of an unstable transition and any policy change in the world's largest oil exporter. The new King also retained oil minister Ali-Al-Naimi on Friday, which sent a clear message to the market that the Kingdom would maintain the current policy of no production cuts amid falling prices.
WTI Crude for March delivery traded at USD 44.92/barrel, down 67 cents, while Brent Crude for March delivery traded at USD 48.03/barrel, down 76 cents for the day. Earlier today, the WTI Crude hit an intraday low of USD 44.36/barrel, just above the USD 44.20/barrel low hit on Jan. 13.
WTI Crude Technical Levels
The immediate support is seen at 44.72, under which losses could be extended to 44.36. Meanwhile, resistance is seen at 45.24 and 45.88 levels.
Prices had rallied last week as the death of King Abdullah triggered speculation of change in Saudi’s oil policy. However, the new King Salman moved to assuage fears of an unstable transition and any policy change in the world's largest oil exporter. The new King also retained oil minister Ali-Al-Naimi on Friday, which sent a clear message to the market that the Kingdom would maintain the current policy of no production cuts amid falling prices.
WTI Crude for March delivery traded at USD 44.92/barrel, down 67 cents, while Brent Crude for March delivery traded at USD 48.03/barrel, down 76 cents for the day. Earlier today, the WTI Crude hit an intraday low of USD 44.36/barrel, just above the USD 44.20/barrel low hit on Jan. 13.
WTI Crude Technical Levels
The immediate support is seen at 44.72, under which losses could be extended to 44.36. Meanwhile, resistance is seen at 45.24 and 45.88 levels.