April Nymex crude prices lost ground yesterday but have picked up in Asia this morning with the WTI contract rising from $106.48 to $107.06, before slipping to $106.74 as equities curbed earlier gains and the BOJ announced a hold on rates and no increase in the Y65 trln QE program. Yesterday saw oil trade in tandem with risk, falling to $105.36 from $107.48 in Europe, before equities bounced, US retail sales rose in February, and EU’s Juncker announced late in the day that EU FinMins had endorsed the Greek bailout package. The WTI April contract then staged a recovery to $106.48. This evening sees the weekly API crude inventory report with analysts expecting a build of around 2 million barrels in stocks on the latest week. Despite ever present Middle East tensions which have recently underpinned prices, some Arab oil ministers feel that prices are currently too high and $100 a barrel would be a more appropriate level. Today’s support is seen towards $105.36 and $104.33 with resistance at $107.47 and $108.20.
EasyForexNews Research Team