Nymex WTI crude prices headed higher yesterday as some risk appetite returned and euro-dollar and gold both headed higher. Calls from European leaders to bolster the ESM and EFSF led the move, but the main driver appears to have been the agreement in Brussels of the EU oil import embargo on Iran as traders factored in the news. The March WTI contract opened at $98.34 and after an early dip to $97.40 in Asia, ran up strongly to $100.24 before closing out the session at $99.58. Asian markets this morning saw an early push up to $99.92 before easing back to $99.44 and settling around $99.80 ahead of the european open. Support is now seen towards $98.82 and $98.04 with resistance at yesterday’s highs of $100.24 and $101.12. ICE Brent crude for March lagged the WTI move yesterday as the spread tightened to around $11, with the latest commitment of Traders report showing a decrease in money manager long contracts and an increase in shorts over the latest week.
EasyForexNews Research Team