Baker Hughes Gives WTI The Blues; Brent Holds Steady
MarketPulse | Nov 27, 2017 12:07AM ET
Oil trading shows signs of life in Asia trading with, WTI dropping on a higher Baker Hughes while Brent holds steady.
The price action in crude diverged in Asia this morning with WTI falling 0.40% to 58.55 while Brent crude enjoyed a small 0.12% gain to 63.88. The difference in price action was likely due to the Baker Hughes Rig Count data showing that eight rigs were added by shale producers in the U.S., as well as slightly overbought technical indicators.
Brent’s downside, in particular, should be limited ahead of Thursday's crucial, official OPEC meeting where we are expecting the production cut agreement to be rolled over to cover all of March 2018. The Street has pretty much priced this in as a done deal, so anything less would almost certainly see both contracts coming under renewed selling pressure.
Brent crude continues to bubble under strong resistance at 64.40 and 64.75, both levels being daily double tops. It has interim support nearby at 63.50 with a break implying we could see a corrective sell-off to the next support at 62.30. Below this level is the crucial 61.25 multi-day low from early November.
WTI’s relative strength index (RSI) continues to be at very overbought levels implying that it will find the going hard to the topside as the week starts. Like Brent, it is vulnerable to profit taking and position squaring ahead of the OPEC meeting. Initial resistance is at 58.90 with initial support at 57.80. A break of this level opens up a possible correction to 56.75 ahead of the trendline support at 56.30 today.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.