June Nymex crude oil prices are trading $103.95 Friday, down 60 cents on the session. Oil fell from its highest level posted in nearly four weeks after a Standard & Poor’s decision to cut Spain’s credit rating renewed fears over the status of Europe’s faltering economy and, in turn, curb fuel demand. Prices had previously advanced from $103.84 to a high of $104.92, with the peak of the market just falling short of the 50-day moving average which is currently projected at $105.10. Traders are now wary that West Texas Intermediate crude prices may be vulnerable for the next few sessions after economic confidence in the eurozone falters and more Americans than previously forecast filed applications for unemployment benefits. Some traders now see WTI back in a range between $103.50 and $108.50 with no real catalyst anticipated to drive prices outside of those barriers. Short term resistance remains at $105.10, whilst the $103.80 area should provide some minor support. $102.18 should provide more significant support should prices accelerate to the downside.
EasyForexNews Research Team