18 May 2015
WTI Crude stays below 200-DMA
FXStreet (Mumbai) - WTI crude futures pared gains to trade below USD 200-DMA located at USD 60.47/barrel amid worries about a recovery in US shale-oil production. Investors are also likely to be cautious as the OPEC meeting draws closer.
Shale production is recovering…
Last week’s Baker Hughes US drilling rig-count also lost momentum, falling by 8 rigs to 660 rigs, the smallest fall in 23 weeks. Reports are suggesting that certain shale formations are starting to add rigs, which is weighing on the sentiment.
Meanwhile, there is speculation that the OPEC may boost its production at its meeting in June. Consequently, the WTI futures are having a difficult time to rise and sustain gains above its 200-DMA.
WTI Crude Technical Levels
The futures currently trade at USD 60.10/barrel. The immediate resistance is located at 60.47 (200-DMA), above which gains could be extended to 61.81. On the flip side, a break below 59.63 (10-DMA), under which the prices could drop to 58.73.
Shale production is recovering…
Last week’s Baker Hughes US drilling rig-count also lost momentum, falling by 8 rigs to 660 rigs, the smallest fall in 23 weeks. Reports are suggesting that certain shale formations are starting to add rigs, which is weighing on the sentiment.
Meanwhile, there is speculation that the OPEC may boost its production at its meeting in June. Consequently, the WTI futures are having a difficult time to rise and sustain gains above its 200-DMA.
WTI Crude Technical Levels
The futures currently trade at USD 60.10/barrel. The immediate resistance is located at 60.47 (200-DMA), above which gains could be extended to 61.81. On the flip side, a break below 59.63 (10-DMA), under which the prices could drop to 58.73.