Nymex Crude prices have eased back this morning in Asia after rising yesterday on the back of a surprise draw in domestic crude inventories. The EIA reported a draw of 1.16 million barrels for the latest reporting week which was in sharp contrast to analysts expectations of a 2 million barrel build. The May contract hit highs of $107.64 after lows around midday of $106.06, and closed the session at $107.27 up almost $1 from opening levels of $106.33. Some support may also have been attributed to Obama administration’s move to fast track construction approval of the proposed extension of the Keystone pipeline to the Gulf coast. Asia this morning has seen a sell-off following weaker Chinese PMI data with the contract slipping to $106.33 before settling around $106.55. Support today comes in at $105.86 and $104.45 with resistance at $107.87 and $108.68. ICE Brent is trading down at $123.50 this morning from opening levels around $124.20 and has support at $122.79 and $121.37. Resistance is at $124.80 and $125.61.
EasyForexNews Research Team