22 Dec 2014
Saudi won’t cut production, WTI Crude falls from day’s high
FXStreet (Mumbai) - WTI Crude has erased part of its gains today after Saudi Arabia delivered a tough message to the oil markets stating it shall never cut its output.
WTI Crude now trades 0.81% higher at USD 57.59/barrel, after declining from the high of USD /barrel hit earlier today. The commodity eased from the day’s high after Saudi oil minister Ali al-Naimi said, “We are going to continue to produce what we are producing, we are going to continue to welcome additional production if customers come and ask for it". The Minister also said that other Oil exporting nations may decide to cut their output, although Saudi Arabia would maintain its position forever and not just in 2015.
US crude prices have slumped by nearly 50% in six months, the sharpest fall for many years. This has led to conspiracy theories that Saudi Arabia is crowding out American competitors.
WTI Crude Technical Levels
The immediate support is seen at 57.33, under which prices may re-test levels. Meanwhile, resistance is seen at 58.08 and 58.52 levels.
WTI Crude now trades 0.81% higher at USD 57.59/barrel, after declining from the high of USD /barrel hit earlier today. The commodity eased from the day’s high after Saudi oil minister Ali al-Naimi said, “We are going to continue to produce what we are producing, we are going to continue to welcome additional production if customers come and ask for it". The Minister also said that other Oil exporting nations may decide to cut their output, although Saudi Arabia would maintain its position forever and not just in 2015.
US crude prices have slumped by nearly 50% in six months, the sharpest fall for many years. This has led to conspiracy theories that Saudi Arabia is crowding out American competitors.
WTI Crude Technical Levels
The immediate support is seen at 57.33, under which prices may re-test levels. Meanwhile, resistance is seen at 58.08 and 58.52 levels.