Nymex crude prices rallied strongly yesterday the move fuelled by a surge higher in equities, IMF’s upbeat global growth forecasts raised for the first time in over a year, strong Spanish auctions and a robust German ZEW reading. WTI is attempting to consolidate yesterday’s gains from $103.19 to $105.50, with the June contract currently trading in Asia around $104.80 having closed in the pit session yesterday at $104.64. Last night’s API weekly inventory report showed a build of 3.4 million barrels in crude stocks which was above analysts expectations of around 2 million barrels, but traders will now be eyeing today’s more definitive data from the EIA at 1430GMT for confirmation. Brent crude continues to lag the rise in WTI this week following semi positive weekend talks in Istanbul between the West and Iran, with the premium over WTI falling again to just under $14 from early April peaks around $20.25. June Brent is currently trading around $118.70 in Asia. Support for WTI today is at $104.02 and $103.11 with resistance seen up at yesterday’s high of $105.50 and $106.17.
EasyForexNews Research Team