Testing $95 will be a break through for WTI Crude Oil

Last Updated : 15 January 2013 at 10:05 IST

Testing $95 will be a break through for WTI Crude Oil Source :Bloomberg

Nevertheless, there are technical signs that WTI crude oil may have been overbought as 14-day relative strength index on Monday climbed above 70; that too for the second time in three days.

Commodity Online
Riding on the anticipation that the US economy is recovering from the damages inflicted by Great Recession, crude oil futures climbed to almost four month highs yesterday before retreating into shells.

US retail sales data are forecast to climb for a second month in December, Bloomberg predicted as Commerce Department data is due this evening.

“There are signs of a recovery in the U.S.,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin to Bloomberg News.

“If we test $95 a barrel on the topside then I think we’ll see oil break through.” he added.

WTI crude oil for delivery on March 13 was seen trading at $94.14 on Monday, the highest settlement since Sept. 18, Bloomberg data showed.

Brent crude oil for delivery on March 13 was spotted trading at $110.71 a loss of $0.32 or 0.29% as of 09.59 AM IST. WTI crude oil contract for delivery on the same date was found trading at $94.34 a loss of $0.25 or 0.26% as of 10.00 AM IST.

Nevertheless, there are technical signs that WTI crude oil may have been overbought as 14-day relative strength index on Monday climbed above 70; that too for the second time in three days.

The Chinese GDP data scheduled to be released on Friday morning Indian time is also expected to aid futures. Data on US industrial production and home building would also be released this week.

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