Nymex crude prices are attempting to rally this morning in Asia with the May contract up around $106.50 after closing yesterday at $106.07. The contract fell back from highs of $108.37 early yesterday as the EUR/USD and equities were driven lower following a collapse in the AUD/USD on comments from BHP that demand for Australian raw materials could wane. The move was later exacerbated by comments from Saudi Oil minister Al- Naimi who pointed out that the crude market was well supplied and that the Straits of Hormuz would remain open despite any threats from Iran. May WTI hit lows of $105.70 before closing just above $106.00. Last night’s API release reported a draw in crude inventories of 1.37 million barrels, in sharp contrast to analysts expectations of a 2.2 mmbl build. Trader’s will likely be keeping their powder dry ahead of the more definitive EIA data this afternoon at 1430GMT. Support today is seen at $105.65 and $104.63 with nearby resistance at $106.70 and $107.51. May ICE Brent trades around $124.50 with support at $123.20 and $122.70, resistance at $124.87 and $125.55.
EasyForexNews Research Team