Nymex and Ice Brent crude prices continue to gather support from tensions in the Middle East (notably Iran, who continue to dismiss allegations about it’s nuclear program). US Treas Sec Geithner is now considering releasing some strategic oil reserves as the recent price rises threaten the global economy. Saudi Arabia has also boosted exports in the short term. Latest CFTC data suggests that money managers have increased net longs by around 5.4%, and producers decreased net shorts by about 1% in Nymex and ICE futures. Net longs are at levels not seen since May 2011, although the overall open interest fell by some 3%. WTI April crude is currently trading around $109.40 ahead of the European open, seeing a small slip back from opening levels this week of $109.79 after highs of Y109/95 in NY late on Friday. Support today is seen at $108.95 and $108.49 with resistance at $110.42 and $111.05.
EasyForexNews Research Team