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19 May 2015
Brent crude dips on stronger US dollar
FXStreet (Mumbai) - Brent Crude prices weakened to trade below USD 66/barrel on Tuesday as the US dollar strengthened against the basket of currencies.
Crude hurt by USD index trading at one-month high
Brent futures fell to a low of USD 65.20/barrel as the USD index rose to a one-month high of 95.12 from four month low, thereby making crude oil costly in the non-USD terms.
However, prices have recovered slightly from the daily low to trade at USD 65.55/barrel. Prices had shot well above USD 67/barrel on Monday on concerns of wars in northern Iraq, Syria and Yemen. But the rise proved short lived on growing evidence of mounting supplies - Saudi Arabia's crude exports hit their highest in almost a decade in March, official data showed on Monday, as the top oil exporter increased output to record levels.
Brent Crude Technical Levels
The immediate resistance is located at 65.78 (200-DMA), above which gains could be extended to 66.44 (5-DMA0. On the flip side, a break below the daily low at 65.20 could push the prices down to 64.20 (May 8 low).
Crude hurt by USD index trading at one-month high
Brent futures fell to a low of USD 65.20/barrel as the USD index rose to a one-month high of 95.12 from four month low, thereby making crude oil costly in the non-USD terms.
However, prices have recovered slightly from the daily low to trade at USD 65.55/barrel. Prices had shot well above USD 67/barrel on Monday on concerns of wars in northern Iraq, Syria and Yemen. But the rise proved short lived on growing evidence of mounting supplies - Saudi Arabia's crude exports hit their highest in almost a decade in March, official data showed on Monday, as the top oil exporter increased output to record levels.
Brent Crude Technical Levels
The immediate resistance is located at 65.78 (200-DMA), above which gains could be extended to 66.44 (5-DMA0. On the flip side, a break below the daily low at 65.20 could push the prices down to 64.20 (May 8 low).