Nymex crude prices reversed Tuesday’s sharp falls yesterday aided by the weekly EIA inventory report which showed a build in inventories over the last week of 2.8 million barrels. Whilst the figure was higher than analysts expected, it was considerably less than the 6.6 mmbl build reported by the API on Tuesday, and the EIA report showed a sharp drop
in product stocks. Iran yesterday announced it would severe exports to the EU adding Germany to its list which already includes the UK, France, Greece and Spain,warning the West to curb its “language of force” ahead of weekend talks in Istanbul over its nuclear program. The May contract is currently trading around $102.70 in Asia this morning in a tight $102.37-75 range ahead of the European open. Yesterday saw the contract leap from Asian lows of $100.83 to $103.13 following the EIA release, before settling the session around $102.70. Support today is seen at $101.99 and $101.01, with resistance up at $103.40 and $104.39.
EasyForexNews Research Team