Brent Oil Slips Towards Sharp Weekly Loss on Growing Production – Outlook Cautious
Feb, 09th 15:35
Oil prices fell for a sixth day on Friday, and were on track for their biggest weekly losses in 10 months, as record-high U.S. crude output added to concerns about a sharp rise in global supplies.
Brent futures were down 30 cents at $64.51 a barrel by 0925 GMT. On Thursday, Brent fell 1.1 percent to its lowest close since Dec. 20.
U.S. West Texas Intermediate (WTI) crude was down 42 cents at $60.73 a barrel, having settled down 1 percent in the previous session, its lowest close since Jan. 2.
Iran announced plans to increase its production within the next four years by at least 700,000 barrels a day.
U.S. domestic crude production hit a record of 10.25 million barrels per day (bpd) for the most recent week, according to the U.S. Energy Information Administration (EIA), while an outage on a key oil pipeline in the North Sea proved short-lived.
OPEC member Iran also announced plans on Thursday to increase production within the next four years by at least 700,000 barrels a day, which Brennock said marked “a hat-trick of heartaches” for oil bulls.
On the technical charts, Brent oil is trading sideways below the lower band of the Bollinger bands and holding the support of the 100 day EMA. The market is trading below all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 32.61 and the MACD is below the signal line.
Buy digital Put options between 64.20 and 63.90, valid until 23:00 GMT February 9th 2018