19 Jun 2015
WTI slumps to lows near $59.00
FXStreet (Edinburgh) - The daily downside in the West Texas Intermediate is now picking up pace, challenging session lows in the $59.20 region.
WTI weaker on USD, Saudi Arabia
The selling pressure around crude oil prices has accelerated today in response to market fears of an increase in the output of Saudi Arabia, as hinted by recent comments by Saudi oil officials.
In addition, Greek woes and the possibility of a default in light of the upcoming repayments and the deadline on June 30th have also brought in preoccupation amongst oil traders, who see the country’s inability to honour its debts as a potential trigger for another recession in the euro area.
And finally, a resurgence of the bid tone in the US dollar is weighing on the demand of the USD-denominated assets, collaborating with the WTI’s decline.
In the data space, driller Baker Hughes has reported that US oil rigs in use have decreased by 2 to 631 in the last week.
WTI relevant levels
WTI is now retreating 2.47% at $58.96 facing the next support at $58.70 (low Jun.9) ahead of $58.32 (low Jun.8) and then $57.21 (low Jun.5). On the flip side, a breakout of $61.83 (high Jun.2) followed by $61.91 (high Jun.11) and finally $62.22 (high Jun.10). On the flip side, a breakdown of $59.34 (low Jun.17) would aim for $59.19 (low Jun.15) and then $58.70 (low Jun.9).
WTI weaker on USD, Saudi Arabia
The selling pressure around crude oil prices has accelerated today in response to market fears of an increase in the output of Saudi Arabia, as hinted by recent comments by Saudi oil officials.
In addition, Greek woes and the possibility of a default in light of the upcoming repayments and the deadline on June 30th have also brought in preoccupation amongst oil traders, who see the country’s inability to honour its debts as a potential trigger for another recession in the euro area.
And finally, a resurgence of the bid tone in the US dollar is weighing on the demand of the USD-denominated assets, collaborating with the WTI’s decline.
In the data space, driller Baker Hughes has reported that US oil rigs in use have decreased by 2 to 631 in the last week.
WTI relevant levels
WTI is now retreating 2.47% at $58.96 facing the next support at $58.70 (low Jun.9) ahead of $58.32 (low Jun.8) and then $57.21 (low Jun.5). On the flip side, a breakout of $61.83 (high Jun.2) followed by $61.91 (high Jun.11) and finally $62.22 (high Jun.10). On the flip side, a breakdown of $59.34 (low Jun.17) would aim for $59.19 (low Jun.15) and then $58.70 (low Jun.9).