Nymex WTI crude prices are staging a recovery this morning after a heavy sell-off yesterday partly on profit taking, but also on fears from traders that the recent rise in prices may spark some demand destruction. The Iranian/US tensions remain however, and this is helping to add some support to the US and European oil prices. The White House is also in discussions with the EIA over possible use of the Strategic Petroleum Reserves should oil supplies be disrupted. WTI is picking up again this morning after opening in Asia at $106.50 and has built higher on the session as risk appetite increases ahead of the ECB’s LTRO operations today, and bourses continue to rise along with precious metals. Last night’s API data reported a small 500,000 barrel build in crude inventories for the latest week which was below analysts expectations, but the story may be different on today’s release from the more definitive EIA at 1530GMT. April crude has risen to $107.12 and currently sits around $1.0690. Support is seen at $106.20 and $105.45 with resistance at $107.60 and $108.71.
EasyForexNews Research Team