Nymex crude oil prices leapt higher yesterday in thin trading conditions over threats from Iran that it would close the Straits of Hormuz in a response to threats of sanctions from Western nations against its oil exports. About a sixth of the worlds oil production passes through the narrow straits which is seen as perhaps the world’s most vital oil waterway. The February contract opened at $99.92 and eased in Asia to $99.37 before a sharp move up to $101.77 in low volume trading, closing out the session at $101.34. Today’s support is seen at $100.00 at $99.30 with resistance at $102.56 and $103.3. Asian markets this morning have seen a small rally up to $101.67, before easing off to $101.18 and settling around $101.30 ahead of Europe.
EasyForexNews Research Team