8 Apr 2015
WTI drops nearly 2% as Saudi pumps output
FXStreet (Mumbai) - WTI oil futures on the Nymex slid in the European morning, snapping two-day rally, after reports that Saudi Arabia boosted its crude output to the highest level on record in March. While markets now await fresh stockpiles data due out later today.
Saudi’s oil output at record highs
Currently, WTI trades nearly -2% lower at 52.96, pulling away from fresh monthly highs reached yesterday at 54.11 levels. Crude prices lost ground and tumbled as traders digested news that Saudi Arabia booked record oil production last month ahead of fresh weekly stockpiles data.
Saudi Arabia's Oil Minister Ali al-Naimi said on Tuesday that the country's oil output reached a record of 10.3 million bpd for March and is likely to stay around 10 million bpd for some months ahead.
Meanwhile, the Energy Information Administration (EIA) will report its US crude oil inventories for the past week later in the day, with expectations of a rise of 3.28 million barrels for the week ending April 3. However, the market hopes to see a second consecutive weekly decline in oil production.
On Tuesday, the American Petroleum Institute said that stockpiles in the US surged 12.2 million barrels over the measured week, much more than an increase of 3.4 million barrels expected.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 54 levels above which gains could be extended to 54.92 levels. Meanwhile, support is seen at 52.40 levels from here losses could be extended to 50 levels.
Saudi’s oil output at record highs
Currently, WTI trades nearly -2% lower at 52.96, pulling away from fresh monthly highs reached yesterday at 54.11 levels. Crude prices lost ground and tumbled as traders digested news that Saudi Arabia booked record oil production last month ahead of fresh weekly stockpiles data.
Saudi Arabia's Oil Minister Ali al-Naimi said on Tuesday that the country's oil output reached a record of 10.3 million bpd for March and is likely to stay around 10 million bpd for some months ahead.
Meanwhile, the Energy Information Administration (EIA) will report its US crude oil inventories for the past week later in the day, with expectations of a rise of 3.28 million barrels for the week ending April 3. However, the market hopes to see a second consecutive weekly decline in oil production.
On Tuesday, the American Petroleum Institute said that stockpiles in the US surged 12.2 million barrels over the measured week, much more than an increase of 3.4 million barrels expected.
Crude Oil Technical Levels
WTI oil has an immediate resistance which stands at 54 levels above which gains could be extended to 54.92 levels. Meanwhile, support is seen at 52.40 levels from here losses could be extended to 50 levels.