Crude Oil Prices Spike Lower as WTI Crude Breaks Below $65
Oil Price Analysis and News
WTI and Brent crude futures have both come under notable selling pressure in recent trade with WTI breaking below the $65 to lows of $64.30, while Brent crude futures are down over 1.3%, with losses curbed by the 61.8% Fibonacci retracement at $72.75. Oil prices have eased in recent sessions with OPEC members stating that they would replace the drop in Iranian crude exports, while the latest US oil inventory data showed a weekly build (Full story). Consequently, Brent crude has dropped near 3% since failing to test the $75 handle. However, with the fundamental outlook little changed over the past 24hours, the recent move looks to be technical, given that the fundamental outlook continues to provide a constructive outlook for oil prices.
Aside from the oil market specifically, risk sentiment has been slightly softer with Eurozone equity markets edging lower following a slew of softer earnings from the likes of Deutsche Bank and RBS. Consequently, US equity futures are trading with modest losses this morning (-0.2%).
Brent Crude Price: 5-Minute Timeframe (Apr 25th – Apr 26th)
WTI Crude Price: 5-Minute Timeframe (Apr 25th – Apr 26th)
Oil Impact on FX
Net Oil Exporters: These counties tend to benefit when the price of oil rises. This includes RUB, CAD, MXN, NOK.
--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.