February Nymex crude prices eased back yesterday despite late gains in the S&P futures. The EIA reported a much larger than expected build in crude inventories for the week ending Jan6 which weighed heavily on the contract. The report showed a build of 4.96 million barrels against analysts expectations of around 1 mmbls. WTI opened yesterday at 4102.20 and headed higher in Asia and Europe to $102.46 before a sell off to $101.23. The inventory release then pushed the contract to lows of $100.55 before another bounce to $102.05. This proved to be short-lived and the market closed the session at $100.87. Asian markets have since led a recovery back up to $101.46 this morning before settling around $101.30 ahead of the European open. The market taking some notice of strike threats in Nigeria and the on going breast beating from Iran over the Straits of Hormuz and US sanctions. Today’s support is at $100.00 and $99.23 with resistance at $102.51 and $104.15.
EasyForexNews Research Team