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27 Nov 2014
Crude prices collapse to fresh four-year lows ahead of OPEC meet
FXStreet (Mumbai) - Crude prices at both the sides of the Atlantic extended slide to fresh four-year lows ahead of the Oil and Petroleum Exporting Countries (OPEC) as the markets do not see a supply cut coming from the OPEC group today.
Brent Crude for January fell 2.8% to trade at USD 75.58/barrel, while the WTI Crude for January delivery fell 2.79% to USD 72.02/barrel. Prices declined as we head into the outcome of the OPEC meet as the investors do not expect the OPEC group to announce major supply cuts. Moreover, the expectations were erased after the Saudi Oil Minister said yesterday that a supply cut is not necessary and that the oil market will stabilize itself. The pre-talks between the OPEC and the other major oil powers of Russia and Mexico also failed to reach an agreement.
Brent Crude Technical Levels
Brent has an immediate support located at 74.64 (Aug 2010 close), under which prices can extend slide to 73.50 (June 2009 high). Meanwhile, resistance is seen at 76.76 and 77.56 levels.
Brent Crude for January fell 2.8% to trade at USD 75.58/barrel, while the WTI Crude for January delivery fell 2.79% to USD 72.02/barrel. Prices declined as we head into the outcome of the OPEC meet as the investors do not expect the OPEC group to announce major supply cuts. Moreover, the expectations were erased after the Saudi Oil Minister said yesterday that a supply cut is not necessary and that the oil market will stabilize itself. The pre-talks between the OPEC and the other major oil powers of Russia and Mexico also failed to reach an agreement.
Brent Crude Technical Levels
Brent has an immediate support located at 74.64 (Aug 2010 close), under which prices can extend slide to 73.50 (June 2009 high). Meanwhile, resistance is seen at 76.76 and 77.56 levels.