Nymex crude prices picked up yesterday on a combination of the possibility that the Fed may buy bonds, optimism on the Greek PSI deal finally being sealed, and a smaller than expected build in crude oil inventories reported by the EIA. The April WTI contract has been steadily firming in Asia this morning from $105.90 to $106.47 after trading a NY range of $104.35-106.55 and closing last night at $106.16. The EIA reported a meagre 832,000 barrel build after the API on Tuesday reported a 4.6 mmbl build, which stirred the bulls back into action despite some overall demand decay. Barclays Capital report that shipments from the Persian Gulf nations have dropped by some 300,000 a day which has led Ice Brent crude higher and widened the premium over WTI to just under $18, as US lawmakers also ponder new sanctions via insurance against Iran. Ice Brent is trading higher this morning from $123.77 to $124.32 in recent trade. WTI support is at 105.50 and $104.67, resistance at $106.75 and $107.65. Brent support is at $123.52 and $122.80 with resistance at $124.66 and $125.44.
EasyForexNews Research Team