2 Feb 2015
WTI Crude recovers losses
FXStreet (Mumbai) - Crude prices in the US recovered losses as the energy markets shrugged off the growth concerns triggered by the contraction in the Chinese manufacturing activity.
Falling US rig count may ease supply glut
Markets chose to focus on the latest data from the oil driller Banker Hughes, which showed the number of US oil rigs in operation continues to collapse. Falling rig count signals lower production down the line. "The market is likely too excited about falling rig counts," analysts at Morgan Stanley said in a note on Monday.
Moreover, markets have also ignored the biggest strike at US refineries since 1980 that will curtail crude processing and worsen the supply glut situation.
WTI Crude Technical Levels
Crude currently trades largely unchanged at USD 48.28/barrel. The immediate resistance is seen at 48.31, above which gains could be extended to 49.05 levels. Meanwhile, support on the hourly charts is seen at 47.80 and 46.65 levels.
Falling US rig count may ease supply glut
Markets chose to focus on the latest data from the oil driller Banker Hughes, which showed the number of US oil rigs in operation continues to collapse. Falling rig count signals lower production down the line. "The market is likely too excited about falling rig counts," analysts at Morgan Stanley said in a note on Monday.
Moreover, markets have also ignored the biggest strike at US refineries since 1980 that will curtail crude processing and worsen the supply glut situation.
WTI Crude Technical Levels
Crude currently trades largely unchanged at USD 48.28/barrel. The immediate resistance is seen at 48.31, above which gains could be extended to 49.05 levels. Meanwhile, support on the hourly charts is seen at 47.80 and 46.65 levels.