Nymex crude prices slipped back again yesterday in contrast to the ICE Brent contract which posted gains on the day. Firmer equity markets and lower jobless claims failed to buoy the WTI contract as traders focused on the large storage increase at the Cushing Oklahoma hub following the EIA data release on Wednesday. The Brent contract in contrast headed higher posting small gains on geopolitical issues and very cold weather conditions across Europe. The spread between the 2 contracts for March widened to almost $16, not seen since mid November 2011. The WTI contract opened at $97.11, and after early highs in Europe of $97.99, headed down to $95.44 before closing out the day at $96.36. Asian markets saw a brief rally to $96.80 this morning before easing off to $96.34 and settling around $96.50 ahead of the European open. Today’s support is at $95.33 and $94.30 with resistance up at $97.39 and $98.42.
EasyForexNews Research Team