Crude Oil Price Update. Price Resistance Levels Prevent Increases in Oil Prices.

Oil prices fell for a third consecutive day after being unable to overcome price resistance levels. WTI fell by 0.25 percent to USD $ 105.14 a barrel, while Brent fell by 0.10 percent to USD $ 115.48 a barrel. The fall in prices could also be attributed to fears about the sovereign debt of the European Union and stable oil production from the Middle East.

The European Union reduced the amount of money promised in an emergency fund to bail out member countries suffering from record levels of debts, such as Portugal. This increased fears about a slowdown in economic growth, ultimately leading to a decrease in the demand of oil.

Furthermore, there was a growing realization amongst investors that even though the Libyan civil war appears to continue for a long time, it shall not affect oil production in the other major oil producing countries in the Middle East. This has helped ease fears about possible supply bottlenecks in the foreseeable future, thereby easing prices. Also, the oil prices failed to extend their gains because the traders’ sell orders were clustered around specific price levels, leading to the creation of price resistance levels which prevent prices from rising further.