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23 Jan 2015
Saudi King’s death spurs Oil rally
FXStreet (Mumbai) - Both the crude oil benchmarks jumped after the news of Saudi Arabia king Abdullah jolted oil markets raising concerns over policy decisions from the world’s largest crude exporter.
Currently, Brent oil traded at USD 49.44/ barrel and WTI oil at USD 47.09/ barrel, both gaining over 1% on the day. Crude oil prices recovered sharp losses from the previous session and rebounded today as the announcement of Saudi King’s death sparked concerns about uncertainties over oil markets policy decisions as the King was mainly responsible in OPEC’s decision to maintain its oil-production quota. Saudi Arabia is the biggest producer in the Organization of Petroleum Exporting Countries.
Crude prices witnessed sharp losses in overnight trading after crude stockpiles in US, the world’s biggest oil consumer, rose by 10.1 million barrels through Jan. 16, according to the Energy Information Administration. That was the biggest volume gain since March 2001.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 50.45 levels above which gains could be extended to 51.12 levels. Meanwhile, support is seen at 48.02 levels from here losses could be extended to 47.78 levels.
Currently, Brent oil traded at USD 49.44/ barrel and WTI oil at USD 47.09/ barrel, both gaining over 1% on the day. Crude oil prices recovered sharp losses from the previous session and rebounded today as the announcement of Saudi King’s death sparked concerns about uncertainties over oil markets policy decisions as the King was mainly responsible in OPEC’s decision to maintain its oil-production quota. Saudi Arabia is the biggest producer in the Organization of Petroleum Exporting Countries.
Crude prices witnessed sharp losses in overnight trading after crude stockpiles in US, the world’s biggest oil consumer, rose by 10.1 million barrels through Jan. 16, according to the Energy Information Administration. That was the biggest volume gain since March 2001.
Crude Oil Technical Levels
Brent oil has an immediate resistance which stands at 50.45 levels above which gains could be extended to 51.12 levels. Meanwhile, support is seen at 48.02 levels from here losses could be extended to 47.78 levels.