Nymex WTI crude prices have leapt higher in Asia this morning on the back of improved risk appetite following comments from China PBOC’s Zhou who pledged support for the EU by increasing its holdings in Euro and expanding investment in Europe. The March contract picked up from last night’s session close in NY of $100.74 to $101.74 and remains firm ahead of the European open as equities and gold prices also support. Last night’s API data reported a somewhat bearish 2.9 million barrel build in crude inventories which was above analysts expectations, but the news out of China today has negated the late sell off, and traders will now be more likely looking to the more definitive EIA report at 1530GMT today, before considering any further sales. Tensions in the Middle East have also added support with April Brent crude up around $118.16 from yesterday’s close of $117.35. Support for the WTI contract today lies at $100.28 and $99.66 with resistance up at $101.82 and $102.90. WTI currently trades around $101.60.
EasyForexNews Research Team