15 Apr 2015
Gains in Brent capped by EIA report
FXStreet (Mumbai) - Brent prices advanced 1% on Wednesday on tension in middle east and signs of a dip in the US production, although further gains were capped by the Energy Information Administration (EIA) report, which said US supplies would top out in 2020.
Gains capped by EIA report
The rise in the Brent futures stalled at a high of USD 59.58 after the report from the EIA showed oil production will peak at 10.6 million barrels per day in 2020, a million barrels more than the high forecast a year earlier.
Prices were supported by uncertainty in the Middle East, where fighting continues in Yemen. Further support came from the data in the US, which showed North Dakota's February oil production fell 15,000 barrels per day (bpd) versus January, although the number of producing wells hit a record high.
Another set of data showed Crude stocks in the US rose 2.6 million barrels last week, compared with analysts' expectations for an increase of 4.1 million barrels, the American Petroleum Institute (API) reported on Tuesday. Official inventory data are expected at 14:30 GMT this afternoon.
Brent Crude Technical Levels
The futures currently trade at USD 59.07/barrel. The immediate resistance is seen at 59.73, above which gains could be capped at 61.50. On the flip side, a break below 59.00, could see the prices drop to 57.74 (50-DMA).
Gains capped by EIA report
The rise in the Brent futures stalled at a high of USD 59.58 after the report from the EIA showed oil production will peak at 10.6 million barrels per day in 2020, a million barrels more than the high forecast a year earlier.
Prices were supported by uncertainty in the Middle East, where fighting continues in Yemen. Further support came from the data in the US, which showed North Dakota's February oil production fell 15,000 barrels per day (bpd) versus January, although the number of producing wells hit a record high.
Another set of data showed Crude stocks in the US rose 2.6 million barrels last week, compared with analysts' expectations for an increase of 4.1 million barrels, the American Petroleum Institute (API) reported on Tuesday. Official inventory data are expected at 14:30 GMT this afternoon.
Brent Crude Technical Levels
The futures currently trade at USD 59.07/barrel. The immediate resistance is seen at 59.73, above which gains could be capped at 61.50. On the flip side, a break below 59.00, could see the prices drop to 57.74 (50-DMA).