FXStreet (Mumbai) – The US oil halts its extensive slide and attempts a tepid-recovery on Thursday, although is set to end 2015 on a bearish note.
WTI remains below $ 37
Currently, WTI rises 0.37% to 36.73, holding on above 36.50 levels. Oil prices edged higher this session, trying to recoup some of the sharp losses incurred yesterday following Saudi’s comments and an unexpected increase in the US crude reserves.
On Wednesday, the US WTI crude dropped more than 3% after Saudi energy minister Ali al-Naimi reiterated that the kingdom would continue to pump oil to satisfy customer demand. While the EIA weekly crude inventory report showed a rise of 2.6 million barrels last week, against an expected draw of 2.5 million barrels.
Looking ahead, the outlook for oil next year looks bleak as noted by analysts at Morgan Stanley, “Headwinds (are) growing for 2016 oil. The imbalance in the global oil market has been diminishing in 2H15, but the hope for a rebalancing in 2016 continues to suffer serious setbacks.”
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 38 (round number) above which gains could be extended to 38.58 (Dec 8 High). While to the downside, the immediate support is at 36.28 (Dec 23 Low), below which the prices could drop to 35.66 (Dec 22 Low).
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