May Nymex WTI crude prices are steady this morning around $105.35 in Asia, having fallen back yesterday on a number of issues starting with Chinese growth fears that hit the equity markets. Discussions between US, UK and France over possible release of Strategic reserves to counter any supply shortages as a result of the Iranian embargo also took the bull tone away, and this was all later compounded by a much larger build in the weekly crude inventories reported by the EIA. The EIA release showed a 7.1 mmbl build in contrast to analysts expectations of a 2.55 mmbl build which sent the WTI contract reeling to $104.67 after early highs of $106.94. Crude did manage a small recovery into the close at $105.41 and sits just below the level in quiet Asian trade this morning. Focus today will now be on the Q4 final US GDP data at 1230GMT. Support today is at $104.67 and $104.06 with resistance up at $106.07 and $106.76.
EasyForexNews Research Team