June Nymex crude oil prices edged higher yesterday in tandem with equity markets trading up to $104.10 from earlier lows of $102.79 and closing at $103.55, some 45cents up from opening levels. Last nights API report showed a surprising draw of 985 mbls against analysts expectations of a 1.5 mmbl build which if corroborated by the more definitive EIA report this afternoon will likely raise prices again. The market is currently receiving some buoyancy from latest CFTC data which shows money managers holding over 500,000 contracts in the combined global petroleum markets, with traders now looking to the next round of talks between the majors western countries and Iran on May23. The June contract is currently trading around $103.65 in Asia this morning with support now seen at $102.79 and $102.16. Resistance lies up at $104.10 with a break there pointing up to $104.94. The EIA inventory report is scheduled for release at 1430GMT.
EasyForexNews Research Team