Oil prices have good resistance to the upside at $103.37/bbl, despite Tuesday’s rally by front-month West Texas Intermediate crude, which closed above $100/bbl for the first time in two weeks. WTI crude for February delivery ended the day up $1.66, or 1.7%, at $101.34/bbl on Nymex Tuesday; ICE Brent crude settled up $1.31 at $109.27/bbl. Volume was about one-fourth the normal level, with fewer than 178,000 contracts traded. The thin volume contributed to price volatility, with buy orders leading to jumps in prices. Traders and analysts say the market is being driven by news out of Iran, in which Iranian Vice President Mohammad Reza Rahimi was quoted by the official state news agency saying Iran would close the Strait of Hormuz if Western nations sanction Iran’s oil exports. WTI for February delivery is down 8 cents at $101.26/bbl on Globex.
EasyForexNews Research Team