Nymex crude prices are holding steady this morning in Asia with the April contract trading around $105.00 ahead of the European open. Yesterday saw the pair slip under the $105.00 level from highs of $107.34 after news that Europe was offering to re-open talks with Iran to discuss it’s nuclear intentions. This, along with a sharp 1.5% drop min the S&P and Greek PSI concerns led the contract lower to $104.51 before closing at $104.70. Asian markets have been subdued this morning but China’s announcement that it would be boosting its imports in energy and raw materials has kept the contract buoyed in a $104.75-$105.37 range and currently trades around $105.10. Last night’s API report showed a massive build of 4.6 mmbbl in crude inventories, over double analysts expectations and which included a huge build at the Cushing Oklahoma hub of 2.38mmbls. If this is confirmed by the EIA this afternoon, it will likely add further downside pressure to WTI. Today’s support is seen at $103.60 and $103.16 with resistance at $105.52 and $106.24. The EIA data is released at 1530GMT.
EasyForexNews Research Team