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20 May 2015
Brent crude witnesses recovery
FXStreet (Mumbai) - Brent prices managed to take back part of their losses seen in the previous session, in what appears to be a largely technical driven recovery, given the absence of any fresh fundamental trigger since the Asian session today.
Saudi cranks out more oil, US inventories decline
Crude prices fell almost 3% in the previous session on the back of the strong US dollar, growing evidence of excess supply – Saudi exports at decade high in March. However, the losses were capped after the American Petroleum Institute (API) said crude inventories fell 5.2 million barrels last week, much more than the drop of 1 million barrels that analysts had expected.
Ahead in the day, the oil traders’ decisions would be influenced by the official inventory numbers from the US government.
Brent Crude Technical Levels
Prices recovered from the low of USD 64.97/barrel from the previous session’s low at USD 63.92/barrel. The immediate support is located at 63.92, under which the futures could extend the drop to 62.00 (50-DMA). On the flip side, a break above 65.00 could drive the prices higher to 65.62 (200-DMA).
Saudi cranks out more oil, US inventories decline
Crude prices fell almost 3% in the previous session on the back of the strong US dollar, growing evidence of excess supply – Saudi exports at decade high in March. However, the losses were capped after the American Petroleum Institute (API) said crude inventories fell 5.2 million barrels last week, much more than the drop of 1 million barrels that analysts had expected.
Ahead in the day, the oil traders’ decisions would be influenced by the official inventory numbers from the US government.
Brent Crude Technical Levels
Prices recovered from the low of USD 64.97/barrel from the previous session’s low at USD 63.92/barrel. The immediate support is located at 63.92, under which the futures could extend the drop to 62.00 (50-DMA). On the flip side, a break above 65.00 could drive the prices higher to 65.62 (200-DMA).