June Nymex crude prices fell back sharply yesterday amid concerns over Spanish debt and a much larger than forecast increase in crude inventories reported by the EIA in their weekly report. Analysts were looking for a build of around 1.8-2.0 million barrels with the EIA reporting a figure of 3.86mmbls. The contract fell back from highs of $104.94 to around $104.00 before the release and then accelerated down to $102.63 before a small rally into the close at $103.12. Asian markets this morning have been relatively stable with the contract slipping from $103.28 to $102.96. ICE Brent for June suffered less of a fall from $118.85 to $116.70 closing at $117.97 and widening the premium again over WTI to nearly $15. Today’s WTI support comes in at $102.63 and $101.58, with resistance at $103.79 and $104.66. ICE Brent support is at $117.21 and $116.84, with resistance at $1118.45 and $119.10.
EasyForexNews Research Team