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2 Apr 2015
WTI Crude trades below USD 50.00/barrel
FXStreet (Mumbai) - Crude prices in the US have weakened slightly to trade at USD 49.82/barrel, after posting 5% gains on Wednesday.
The gains were driven by a drop in the US crude output reported by the Energy information Administration (EIA). Crude production in the US dropped 0.4% to 9.4 million barrels per day (bpd) in the week to March 27, the first weekly decline since the end of January. However, domestic inventories rose 4.8 million barrels last week to 471.4 million barrels, hitting record highs for a 12th straight week, the EIA said.
Meanwhile, Iran and six world powers were closer to a preliminary accord on Tehran's nuclear program, but were stuck over key details such as lifting U.N. sanctions and Iran's future atomic research.
WTI Crude futures clocked a high of USD 50.09 earlier today, before inching lower to trade at USD 49.82. Still, prices are trading well above its 50-DMA located at USD 49.283.
WTI Crude Technical Levels
The immediate resistance is seen at 50.48 (100-DMA), above which gains could be extended to 51.07. On the flip side, a break below 49.28 (50-DMA), could drive the pair lower to 48.66 (10-DMA).
The gains were driven by a drop in the US crude output reported by the Energy information Administration (EIA). Crude production in the US dropped 0.4% to 9.4 million barrels per day (bpd) in the week to March 27, the first weekly decline since the end of January. However, domestic inventories rose 4.8 million barrels last week to 471.4 million barrels, hitting record highs for a 12th straight week, the EIA said.
Meanwhile, Iran and six world powers were closer to a preliminary accord on Tehran's nuclear program, but were stuck over key details such as lifting U.N. sanctions and Iran's future atomic research.
WTI Crude futures clocked a high of USD 50.09 earlier today, before inching lower to trade at USD 49.82. Still, prices are trading well above its 50-DMA located at USD 49.283.
WTI Crude Technical Levels
The immediate resistance is seen at 50.48 (100-DMA), above which gains could be extended to 51.07. On the flip side, a break below 49.28 (50-DMA), could drive the pair lower to 48.66 (10-DMA).