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20 Apr 2015
WTI off highs, around $56.50
FXStreet (Edinburgh) - After hitting session highs near $57.20, the barrel of West Texas Intermediate is now returning to the mid-$56.00s.
WTI propped up by China
The upbeat tone around crude oil prices came in response to the easing measures from the PBoC over the weekend, lowering the RRR by 100 bp to18.50%. It is worth recalling that the Chinese economy is the second largest oil consumer and its economy has recently expanded at an annual pace of 7% during the first quarter.
The recent upside in crude oil prices has been bolstered by a decreasing numbers of US oil rigs in use and the less than expected increase in crude inventories, according to the EIA’s last report.
WTI relevant levels
The barrel of WTI is now up 1.29% at $56.46 with the immediate resistance at $57.17 (high Apr.20) ahead of $58.38 (high Dec.19) and then $59.53 (high Dec.12). On the downside, a breach of $54.85 (low Apr.20) would aim for $50.63 (low Apr.9) ahead of $49.57 (low Apr.5).
WTI propped up by China
The upbeat tone around crude oil prices came in response to the easing measures from the PBoC over the weekend, lowering the RRR by 100 bp to18.50%. It is worth recalling that the Chinese economy is the second largest oil consumer and its economy has recently expanded at an annual pace of 7% during the first quarter.
The recent upside in crude oil prices has been bolstered by a decreasing numbers of US oil rigs in use and the less than expected increase in crude inventories, according to the EIA’s last report.
WTI relevant levels
The barrel of WTI is now up 1.29% at $56.46 with the immediate resistance at $57.17 (high Apr.20) ahead of $58.38 (high Dec.19) and then $59.53 (high Dec.12). On the downside, a breach of $54.85 (low Apr.20) would aim for $50.63 (low Apr.9) ahead of $49.57 (low Apr.5).