Nymex April crude prices are holding firm in Asia this morning around $108.50 after a sharp rally yesterday in NY. The move was largely seen as a short squeeze, despite the absence of any further headline news from Iran, and a build in inventories reported by the EIA of 1.63mmbls which was slightly above analysts expectations. Ongoing fears that Iranian oil flows may be cut off continue to underpin the crude prices, with Brent crude homing in on the highs seen last year during the Libyan crisis. Latest reports however show that Iranian oil production and exports are steady for now, but any disruption is likely to create another spike higher. The April contract ran up to $108.74 yesterday in NY before closing at $107.83, up almost $2.5 from earlier lows of $105.45. Asia this morning has seen a tight $108.33-68 range ahead of the european open. Support today comes in at $107.34 and $106.54 with resistance up at Y109.12 and $110.41.
EasyForexNews Research Team