US crude inches up, but lingers around US$36

15-Dec-15

US crude rose saw marginal recovery after moving to almost 11 year lows, as record short interest led to technical covering on fears that the market declined too quickly. At the close, U.S. crude was recorded at US$36.3, while Brent futures was at US$37.7l. OPEC has been pumping near record levels since last year in an attempt to drive US shale producers out of the market. Shale output from USA has fallen, though not by much. Also, the markets have seen an increase in production from Russia. "If you look at a 10-year chart, I think what you'll see is going back to 2008, that December low of $32.40, that's going to be the next big level to watch here," Mike Harris, president of Campbell & Co., told CNBC. "If we get through there, then you know the $30 psychological level will be the next big level for the market to breach."