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6 May 2015
WTI breaks above $62 – at fresh 5-months highs
FXStreet (Mumbai) - WTI oil futures on the Nymex continues its upsurge for the second straight session in the European trading, reaching fresh five months highs, after a combination of shrinking US crude reserves and a falling greenback, while Middle East tensions keep the prices underpinned.
WTI extends its bullish run
Currently, WTI trades slightly higher by 2.57% at fresh five month highs at 62.04 levels, shooting sharply from 60.67 lows. Crude prices rallies this session as news from Saudi Arabia boosts oil prices higher.
Saudi Arabia, the world's largest crude exporter, announced it lifted the official selling price to customers in Europe and North America as a result of stronger demand.
Moreover, fresh tensions in Libya raised concerns that supply from the crude-rich Middle East region may be disrupted. Several protests have led to a shutdown of oil deliveries to a port in the eastern part of the country.
Adding to the positive mood, the American Petroleum Institute said on Tuesday that US crude reserves fell by 1.5 million barrels in the week to May 1.
A weaker greenback also helped to boost demand for oil as it makes it cheaper for holders of other currencies. The US dollar index dropped -0.35% to 94.94 today.
Meanwhile, markets await EIA weekly crude stockpiles report, which is expected to show a 1.2 million barrel rise in US stockpiles for past week.
Technical Levels
WTI oil has an immediate resistance which stands at 62.50 levels above which gains could be extended to 64 levels. Meanwhile, support is seen at 61 levels from here losses could be extended to 59.50 levels.
WTI extends its bullish run
Currently, WTI trades slightly higher by 2.57% at fresh five month highs at 62.04 levels, shooting sharply from 60.67 lows. Crude prices rallies this session as news from Saudi Arabia boosts oil prices higher.
Saudi Arabia, the world's largest crude exporter, announced it lifted the official selling price to customers in Europe and North America as a result of stronger demand.
Moreover, fresh tensions in Libya raised concerns that supply from the crude-rich Middle East region may be disrupted. Several protests have led to a shutdown of oil deliveries to a port in the eastern part of the country.
Adding to the positive mood, the American Petroleum Institute said on Tuesday that US crude reserves fell by 1.5 million barrels in the week to May 1.
A weaker greenback also helped to boost demand for oil as it makes it cheaper for holders of other currencies. The US dollar index dropped -0.35% to 94.94 today.
Meanwhile, markets await EIA weekly crude stockpiles report, which is expected to show a 1.2 million barrel rise in US stockpiles for past week.
Technical Levels
WTI oil has an immediate resistance which stands at 62.50 levels above which gains could be extended to 64 levels. Meanwhile, support is seen at 61 levels from here losses could be extended to 59.50 levels.