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Oil prices trade close to 5-1/2 year lows


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FXStreet (Mumbai) – Both Crude oil benchmarks extended its losing streak today, after plunging to hit fresh five and a half year lows in the previous session.

Currently, Brent oil trades at USD 57.64/ barrel and WTI crude oil trades at USD 53.34/ barrel, both losing over 0.50% on the day. Oil prices are expected to remain downside as traders expect that the global oversupply scenario will persist till mid-2015, providing no respite to the increasing glut.


Moreover, concerns over rising US production from the fracking boom also added to the downside in oil prices.


U.S. production from fracking is flooding the market, Venezuela President Nicolas Maduro said in a speech broadcast on state television over the weekend.


Crude Oil Technical Levels


Brent oil has an immediate resistance which stands at 60.43 (Dec 29 High), above which gains could be extended to 61.77 (Dec 14 High) levels. Meanwhile, support is seen at 57.37 (Dec 29 Low) levels from here losses could be extended to 56.50 (2009) levels.