April Nymex WTI crude prices are holding steady in Asia this morning around $108.40 after losing over $2 yesterday as the euro succumbed to pressure from EUR/JPY sales and the Nymex markets saw some profit taking after a failure to breach the $110 level. The White House pledged to work with Transcanada to extend the Keystone oil pipeline which would help unleash the oversupply at the Cushing Oklahoma hub with an extension down to Port Arthur Texas on the Gulk Coast. Federal permit hurdles however remain for the cross border section to Alberta. In time this should lead to a narrowing of the Brent-WTI premium, currently just over $15. The April contract closed yesterday at $108.56 and slipped in after hours trading to $107.27 but has since picked up in Asia this morning to $108.40 at the time of writing. Today’s API weekly inventory data is expected to show a build of 1mmbl in crude stocks for the latest reporting week. Support today is seen at $107.31 and $106.06 with resistance up at $109.18 and $109.81
EasyForexNews Research Team