Nymex crude prices slipped on Friday and are holding around $107.00 in Asia this morning from highs above $110.00 last week seen after talk of a pipeline explosion in Saudi Arabia. Latest CFTC data suggests money managers increasing net length of contracts by around 5% despite a reduction in producer shorts by around 4%. Overall fears of supply stoppage in the Middle East (Iran) continue to underpin the contract with US Pres Obama reiterating that it was unacceptable for Iran to have any nuclear weapon capability. The US leader is meeting with Israel’s PM Netanyahu today. The April contract has so far traded a $106.82-107.27 range in Asia and has support down at Friday’s low of $105.80, a break there leading down to $105.19. On the topside resistance is seen towards $107.42 with a break there pointing to $108.21. April ICE Brent is currently trading around $123.85 with support seen at $123.1 and $122.43, resistance is sitting up at $124.31 and $124.87.
EasyForexNews Research Team