Crude Oil Movement
On Friday, Crude Oil prices declined 1.51% against the USD for the period ending 21:00GMT, closing at 54.90, amid persistent worries about global supply glut and weak demand.
Last week, the EIA reported that crude stockpiles rose by 7.3 million barrels to a total US commercial crude inventory of 387.2 million barrels in the week ended 19th December, 2014.
Meanwhile, during the weekend, Algerian Energy Minister Youcef Yousfi urged the OPEC members to slash their oil output in order to increase prices and protect incomes of the cartel’s member countries. Furthermore, he projected oil prices to rise to between $60 and $70 per barrel in 2015 and $80 in 2016.
At GMT 0400, Oil is trading at USD 55.24 per barrel in the Asian session 0.62% higher from Friday’s close, after news emerged that a fire due to fighting at one of Libya’s main export terminals destroyed 800,000 barrels of crude, more than two days of the country’s output.
The pair is expected to find support at 54.30, and a fall through could take it to the next support level of 53.37. The pair is expected to find its first resistance at 56.38, and a rise through could take it to the next resistance level of 57.53.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
