Brent crude oil futures plunged by more than 10% in the past 26 hours on the intercontinental exchange and fell below $46 per barrel, with both blends headed for their lowest settlement levels since 2009.
Brent crude recorded a 6-year low of $45.25 per barrel in electronic trade at 1315 hours IST; while the WTI crude slipped below $45 levels in the morning trade and is facing strong headwinds to break $45 levels. The price difference between both the blends of crude has narrowed down to a meager 2.5% indicating that WTI crude is gaining strength.
US crude production meanwhile stood at more than nine million barrels per day, its highest level in more than 30 years.
Meanwhile, Goldman Sachs cut its crude outlook, predicting prices will remain low for a lengthy period sounding the warning bells of a prolonged glut in global oil markets extending well into the year. Also, Goldman has noted that oversupply concerns could trigger another round of sell off in the markets.
Industry experts believe that markets may really have to wait for at least another six months before it could see any recovery in the oil prices.
Chart Check:
The 15 minute chart of the ICE Brent futures chart looks very weak and finds no near term support as oil prices continue to slide. Volumes are low in comparison to Monday’s trade suggesting lower participation in the contracts.
The momentum indicator (MACD) is very volatile on the 15-min chart and continues to flicker between the negative and positive territory which indicates that prices could react wildly to any news in the markets.
Relative strength index (RSI) is currently in the oversold zone indicating that there could be a minor pullback in the next few hours
Brent crude recorded a 6-year low of $45.25 per barrel in electronic trade at 1315 hours IST; while the WTI crude slipped below $45 levels in the morning trade and is facing strong headwinds to break $45 levels. The price difference between both the blends of crude has narrowed down to a meager 2.5% indicating that WTI crude is gaining strength.
US crude production meanwhile stood at more than nine million barrels per day, its highest level in more than 30 years.
Meanwhile, Goldman Sachs cut its crude outlook, predicting prices will remain low for a lengthy period sounding the warning bells of a prolonged glut in global oil markets extending well into the year. Also, Goldman has noted that oversupply concerns could trigger another round of sell off in the markets.
Industry experts believe that markets may really have to wait for at least another six months before it could see any recovery in the oil prices.
Chart Check:
The 15 minute chart of the ICE Brent futures chart looks very weak and finds no near term support as oil prices continue to slide. Volumes are low in comparison to Monday’s trade suggesting lower participation in the contracts.
The momentum indicator (MACD) is very volatile on the 15-min chart and continues to flicker between the negative and positive territory which indicates that prices could react wildly to any news in the markets.
Relative strength index (RSI) is currently in the oversold zone indicating that there could be a minor pullback in the next few hours
