Oil plummets to multi-year lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 6, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - Crude oil prices sunk to fresh multi-year lows, with WTI futures falling to the lowest since December 2008, having shed over 5.56% on Wednesday to trade around $33.90 a barrel.

    Brent fell to an 11-year low, as rising tensions in the Middle East and poor Chinese data fueled concerns about weak demand for refined products. And the EIA report confirmed it, as it showed that crude oil stockpiles decreased by 5.1 million barrels, but gasoline stockpiles grew by 10.6 million barrels, the biggest weekly build since May 1993.

    WTI technical view

    “From a technical point of view, the daily chart shows that the price accelerated lower below the 20 SMA, while the technical indicators turned strongly south, and the RSI indicator is nearing oversold territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the technical indicators halted their decline in extreme oversold territory, but are still far signaling an upturn”.

    Support levels: 33.75 33.10 32.50. Resistance levels: 34.60 35.30 36.00.
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