Nymex crude prices were rather mixed yesterday trading in a fairly tight range despite Fed Bernanke’s dovish comments which sparked a wave of dollar weakness on QE3 fears and drove equities sky high. The commodity sector picked up on the comments but lagged the dollar weakness elsewhere. Asian markets have seen a small slip in May WTI crude prices this morning from $107.07 to $106.70 as the Far East has so far failed to embrace the rally in NY from $106.19 to $107.32. IEA economist Birol stressed concerns that the recent record highs oil prices versus the euro and sterling threaten to tip the EU as a whole into recession which may be weighing on prices, as well as a marked reduction in forecasted global demand from the Dept of Energy. Markets are today expecting a 2.75 million barrel build in Crude inventories for the latest reporting week, with the first report coming tonight from the American Petroleum Institute at 2030GMT. Support today is seen at $106.19 and $105.66 with resistance up at $107.85 and $108.40.
EasyForexNews Research Team