18 May 2015
WTI crude drops below USD 60/barrel
FXStreet (Mumbai) - The West Texas Intermediate (WTI) crude futures in the US fell below USD 60/barrel, after having failed to sustain gains above its 200-DMA located at USD 60.46.
Prices had clocked a high of USD 60.85/barrel after a major advance by Islamic State militants in Iraq. However, supply concerns made sure the price gain did not last long enough. Prices came under pressure after Iran's Deputy Oil Minister Rokneddin Javadi told Reuters that OPEC was unlikely to cut output in June.
Meanwhile, bearish long-term price forecasts from Investment bank Goldman Sachs also weighed over prices.
WTI Crude Technical Levels
Futures currently trade at USD 59.68/barrel. The immediate support is seen at 59.58 (10-DMA), under which prices could drop to 58.73 (May 11 low). On the other hand, resistance is seen at 60.00, above which prices could re-test the daily high of 60.85.
Prices had clocked a high of USD 60.85/barrel after a major advance by Islamic State militants in Iraq. However, supply concerns made sure the price gain did not last long enough. Prices came under pressure after Iran's Deputy Oil Minister Rokneddin Javadi told Reuters that OPEC was unlikely to cut output in June.
Meanwhile, bearish long-term price forecasts from Investment bank Goldman Sachs also weighed over prices.
WTI Crude Technical Levels
Futures currently trade at USD 59.68/barrel. The immediate support is seen at 59.58 (10-DMA), under which prices could drop to 58.73 (May 11 low). On the other hand, resistance is seen at 60.00, above which prices could re-test the daily high of 60.85.