June Nymex WTI crude oil is trading modestly higher at $102.66 up a fraction from yesterday’s close of $102.54 after prices fell away sharply yesterday afternoon. Oil prices tumbled more than 2%, the biggest one day percentage loss since Dec 14, amid expectation that moderate U.S. economic growth will continue to create jobs, which in turn is fedding optimism that Federal Reserve policymakers will not need to resort to a third round of bond buying to stimulate a recovery. OPEC are also working hard to bring oil prices down, after secretary general Abdallah Al Badri made a statement saying that he was “not happy” with barrel prices over $100 “because we know there will be a negative effect – destruction as far as demand is concerned”. Noting that OPEC supply had risen to 32.3mln barrels per day (b/d) in March, compared to a call of 29mln b/d, Al Badri said “We are working hard to bring prices down”. June WTI has seen little movement during Asian hours, with Japan absent for a national holiday. Support is seen at $101.21 a barrel should prices continue to decline with trading cautious ahead of US jobs data.
EasyForexNews Research Team