May Nymex crude prices fell back yesterday as risk sentiment waned amid weakening equity markets initiated in Asia and compounded in Europe following a weak Spanish bond auction. Commodities were also hit with the CRB index down around 1.8%. The EIA reported a huge build of 9 million barrels in it’s weekly crude stocks which was the largest jump since August 2008. The May contract is attempting a small rally this morning in Asia on the back of rising equities, trading around $102.30 after closing in NY last night around $101.47 and having been as low as $101.08 following the EIA inventory release. Rising oil production appears to be a major cause of the glut with Saudi Arabia pledging to continue it’s high daily production (currently just short of 10 mmbl per day) even if the West does release some of its strategic reserves. Support for WTI today comes in at yesterday’s lows of $101.08 and $99.87 with resistance at $103.07 and $104.68.
EasyForexNews Research Team