Nymex crude prices fell back yesterday despite some strong EIA data which beat analysts expectations. The report came in with a draw of 3.44mmbl which was in strong contrast to analysts forecast of a 3mmbl build, but this failed to impress with traders noting weak import demand and refinery utilization. The March contract opened at $101.35 and edged lower in Europe to $101.25 before a move to highs of $102.24. NY opened with the contract heading lower again despite risk building elsewhere and the move accelerated following the data release to lows of $100.12 before closing the session at $100.54. Asian markets this morning have been quiet ahead of the Chinese new year celebrations on Monday, but the contract has picked up a little to $100.89. Support today is noted at $100.00 and $98.98 with resistance at $102.10 and $103.65. Traders will now be looking to Monday’s meeting of EU foreign ministers to decide the terms of the intended embargo on Iran’s oil.
EasyForexNews Research Team