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WTI Crude extends losses on OPEC demand outlook

FXStreet (Mumbai) - Crude prices in the US fell further after the Organization of Petroleum Exporting Countries (OPEC) group revised its 2015 forecast of non-OPEC supplies higher by 120,000 barrels a day.

WTI Crude now trades 2.26% lower at USD 62.38/barrels, extending slide from the levels of USD 62.71/barrel seen before the OPEC news hit the wires. The group also said that the demand for its crude at a 12-year low in 2015. Moreover, the Crude prices are now well below the level needed by 10 out of 12 OPEC member to reach break-even in their annual budgets.

Meanwhile, the group also trimmed its forecasts for global demand in 2014 and 2015. Consumption will increase by 1.12 million barrels a day, or 1.2%, in 2015 to 92.26 million a day, which amounts to a downward revision of 70,000 barrels a day from last month’s report.

WTI Crude Technical Levels

WTI Crude has an immediate support located 62.30, under which losses could be extended to 61.34 levels. Meanwhile, resistance is seen at 62.78 and 63.24 levels.

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