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19 Mar 2015
Brent Crude back below USD 55.00/barrel
FXStreet (Mumbai) - Brent crude prices fell below USD 55/barrel on Thursday after Kuwait backed the OPEC’s decision to keep production levels steady back in November, thereby bringing the concern of supply glut back into the spotlight.
Brent prices as well as WTI Crude prices had rallied sharply on Wednesday after the slightly dovish statement from the Federal Reserve led to a broad based weakness in the US dollar. However, gains were erased today; partly due to a rebound in the US dollar and partly due to comments from Kuwait’s Oil Minister.
"We don’t want to lose our share in the Market," Ali al-Omair, Kuwait’s Oil Minister told reporters on Thursday. Meanwhile, there is also a possibility of a nuclear deal with Iran, which could add up to 1 million barrels of oil supply to the market.
The threat of supply glut led Brent Crude lower to USD 54.51/barrel, while WTI Crude fell to USD 45.18/barrel.
Brent Crude Technical Levels
The immediate resistance is seen at 55.67 (10-DMA), above which gains could be extended to 56.61 levels. On the flip side, support is seen at 53.09 (Feb. 11 low) and 52.50 levels.
Brent prices as well as WTI Crude prices had rallied sharply on Wednesday after the slightly dovish statement from the Federal Reserve led to a broad based weakness in the US dollar. However, gains were erased today; partly due to a rebound in the US dollar and partly due to comments from Kuwait’s Oil Minister.
"We don’t want to lose our share in the Market," Ali al-Omair, Kuwait’s Oil Minister told reporters on Thursday. Meanwhile, there is also a possibility of a nuclear deal with Iran, which could add up to 1 million barrels of oil supply to the market.
The threat of supply glut led Brent Crude lower to USD 54.51/barrel, while WTI Crude fell to USD 45.18/barrel.
Brent Crude Technical Levels
The immediate resistance is seen at 55.67 (10-DMA), above which gains could be extended to 56.61 levels. On the flip side, support is seen at 53.09 (Feb. 11 low) and 52.50 levels.