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31 Mar 2015
WTI remains deep in red, Iran talks loom
FXStreet (Mumbai) - WTI oil futures on the Nymex prolongs its bearish tone and fell further in to losses, struggling around 48 barrier as traders monitor whether an agreement is reached with Iran over its nuclear program.
WTI wavers around USD 48
Currently, WTI trades nearly -1.50% lower at 48/ barrel, hovering near new three day lows at 47.81 levels. Crude prices remains pressured as the deadline for talks over Iran's nuclear program looms. Traders worry that a deal would ease sanctions and the country would flood the already oversupplied market with more crude oil.
"Buyers are now waiting for an outcome on Iran/US nuclear program negotiations, which, if favourable, could release Iranian crude oil stocks. Iran has built up significant oil inventories and could immediately increase exports if sanctions are lifted," ANZ analysts noted.
Iran could increase oil production by 500,000 barrel a per day (bpd) in three to six months if sanctions are lifted, and by an additional 700,000 bpd within another year, consultancy company Facts Global Energy estimated.
Further, the US dollar index was trading higher by 0.23% this morning, standing at 98.52, which continues to weigh on crude prices.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 49 levels above which gains could be extended to 49.46 levels. Meanwhile, support is seen at 47 levels from here losses could be extended to 46.67 levels.
WTI wavers around USD 48
Currently, WTI trades nearly -1.50% lower at 48/ barrel, hovering near new three day lows at 47.81 levels. Crude prices remains pressured as the deadline for talks over Iran's nuclear program looms. Traders worry that a deal would ease sanctions and the country would flood the already oversupplied market with more crude oil.
"Buyers are now waiting for an outcome on Iran/US nuclear program negotiations, which, if favourable, could release Iranian crude oil stocks. Iran has built up significant oil inventories and could immediately increase exports if sanctions are lifted," ANZ analysts noted.
Iran could increase oil production by 500,000 barrel a per day (bpd) in three to six months if sanctions are lifted, and by an additional 700,000 bpd within another year, consultancy company Facts Global Energy estimated.
Further, the US dollar index was trading higher by 0.23% this morning, standing at 98.52, which continues to weigh on crude prices.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 49 levels above which gains could be extended to 49.46 levels. Meanwhile, support is seen at 47 levels from here losses could be extended to 46.67 levels.