Nymex crude prices jumped higher yesterday despite risk aversion creeping back into markets following the initial boost from the ECB’s LTRO tender which effectively added E489 billion liquidity to the EUROZONE, but the move is seen more as a temporary stocking filler for the next few months. February crude prices opened at $97.53 pulling up in Asia to $98.47 before heading lower again as the euro slumped off post LTRO highs dragging crude down to lows of $96.80. The EIA then released weekly inventory data which astounded the markets with a 10.57 million barrel draw against analysts expectations of a 2.25mmbl draw. The contract leapt to $99.25 before easing back into the close at $98.67. Asian markets have seen a brief rally to $99.13 this morning before peeling back to $98.55. Today’s support is at $97.63 and $96.72 with resistance at $99.87 and $100.62.
EasyForexNews Research Team