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14 May 2015
Oil trades above USD 60/barrel
FXStreet (Mumbai) - WTI crude oil traded above USD 60/barrel as traders weigh a sharp drop in the refinery utilization against the decline in the US crude inventories.
200-DMA a tough barrier to breach?
The futures are struggling to break above the 200-DMA located today at USD 60.97. Prices tested the average on May 6th, followed by another attempt on May 12th, and May 13th. Each time, the futures failed to sustain gains above the same.
Prices hit an intraday high of USD 61.81/barrel in the previous session, only to pare gains and end lower at USD 60.08/barrel. Moreover, the recovery in Crude is stalling near its 200-DMA on concerns the supply glut issue is still very much in place. US crude stockpiles remain more than 100 million barrels above the five-year average for this time of year and producers there are pumping near a record pace.
WTI Crude Technical Levels
The immediate resistance is located at 60.97 (200-DMA), above which the futures could re-test the previous session’s high at 61.81. On the flip side, a break below 59.86 (10-DMA), under which losses could be extended to 58.73 (May 11 low).
200-DMA a tough barrier to breach?
The futures are struggling to break above the 200-DMA located today at USD 60.97. Prices tested the average on May 6th, followed by another attempt on May 12th, and May 13th. Each time, the futures failed to sustain gains above the same.
Prices hit an intraday high of USD 61.81/barrel in the previous session, only to pare gains and end lower at USD 60.08/barrel. Moreover, the recovery in Crude is stalling near its 200-DMA on concerns the supply glut issue is still very much in place. US crude stockpiles remain more than 100 million barrels above the five-year average for this time of year and producers there are pumping near a record pace.
WTI Crude Technical Levels
The immediate resistance is located at 60.97 (200-DMA), above which the futures could re-test the previous session’s high at 61.81. On the flip side, a break below 59.86 (10-DMA), under which losses could be extended to 58.73 (May 11 low).