30 Jan 2015
Brent oil marginally up on China reserve regulation news
FXStreet (Mumbai) - Brent Crude oil recovered losses to trade higher at USD 49.30/barrel on hopes that new commercial crude reserve regulations in China are likely to boost import demand in the short term.
New Crude reserve regulations in China
Oil prices had declined in the Asian session as producers reduce operating costs to adjust to lower export revenues amid record high production. US crude hit a near-six-year low in the previous session on data showing fresh additions to record-high US oil inventories.
However, Brent recovered from the low of USD 48.77 to trade 0.36% higher at USD 49.30/barrel on new crude reserve regulations in China. Chinese refineries will be expected to store enough crude for 15 days of average throughout, forcing many commercial oil traders to import crude in the short term to meet the requirements.
Brent Oil Technical Levels
The immediate support is seen at 48.85 (5-DMA), under which losses could be extended to 48.34 levels. On the flip side, resistance is seen at 49.94 (Jan. 27 high), above which oil could rise to 50.57 (Jan. 15 high).
New Crude reserve regulations in China
Oil prices had declined in the Asian session as producers reduce operating costs to adjust to lower export revenues amid record high production. US crude hit a near-six-year low in the previous session on data showing fresh additions to record-high US oil inventories.
However, Brent recovered from the low of USD 48.77 to trade 0.36% higher at USD 49.30/barrel on new crude reserve regulations in China. Chinese refineries will be expected to store enough crude for 15 days of average throughout, forcing many commercial oil traders to import crude in the short term to meet the requirements.
Brent Oil Technical Levels
The immediate support is seen at 48.85 (5-DMA), under which losses could be extended to 48.34 levels. On the flip side, resistance is seen at 49.94 (Jan. 27 high), above which oil could rise to 50.57 (Jan. 15 high).