Nymex crude prices picked up again yesterday extending Friday’s gains as equities rallied and the dollar weakened in a run of stop hunting, that led a sharp recovery in EUR/USD. On going concerns over supply disruption of oil from Iran is also favouring higher prices. This morning Asia has seen some slippage to yesterday’s gains on talk that Saudi Arabia may now boost output and that it’s Cabinet may work closely with consumers and producers to restore “fair” prices. May WTI is currently trading around $107.90 having risen yesterday from $107.04 to $108.70 and closing in NY at $108.56. This morning has seen a steady fall back to $107.85. This evening sees the weekly inventory release from the API, where traders will be looking for further signs of stockpiling after last weeks data from the EIA showed reserves at 6 month highs. Analysts forecasts for the latest week’s inventory suggest a build of around 2.1 mmbls which if correct may relieve some of the upside pressure on prices, barring heightened M/E tensions. Support today is at $107.19 and $105.83 with resistance at $109.19 and $109.93.
EasyForexNews Research Team