Nymex crude prices came under pressure yesterday, dragged lower by falling equities and renewed EU debt concerns which led to widening peripheral spreads particularly in Spain and Italy. The move lower was compounded later by the weekly API report which showed a build in crude stocks of 6.6 million barrels, well above analysts estimates of 1.8-2.0 mmbls, and today’s focus will now be on the more definitive EIA inventory release at 1430GMT. The May WTI contract is currently trading around $101.30 in Asia after opening around $101.02,having fallen yesterday from early NY highs of $102.96 to $100.68. Over supply including imports from Saudi Arabia, and some weaker domestic demand are both weighing heavily, with traders now eyeing a possible break of the psychological $100.00 level.Support today is at $100.68 and $99.41 with resistance up at $101.82 and $102.63.
EasyForexNews Research Team