Nymex June crude oil furtures closed marginally lower yesterday but Asian markets have been steady this morning with WTI holding just above $103.00 after trading a $102.13-103.66 range in Europe and NY to close at $102.72. Prices remain firm due to “precautionary demand” created by the Iranian sanctions according to World bank’s Chief MENA economist Caroline Freund. Iran’s Oil Minister Ghasemi has pointed criticism at Saudi Arabia which has been exceeding its 30 million barrel per day OPEC quota recently and this is likely to create some tension at the next meeting between Iran and Western states. Some volatility is also expected in the WTI market today as the May contract rolls off the boards, and this accounted for part of the choppy trading yesterday. Support today for the June WTI contract is at $102.13 and $101.19 with resistance nearby at $103.66 and $104.25.Brent crude is holding around $118.30 this morning after easing from $119.15 to $117.68 yesterday and has initial support $117.68 and $116.87. Resistance is seen up at $119.13 and $120.25.
EasyForexNews Research Team