Nymex crude oil prices fell back yesterday after an initial surge higher in Europe which was on the back of optimism that the Greek/PSI debt swap deal was nearing conclusion. The rally was led by Brent crude and saw a jump in the March WTI contract from $98.88 to $101.29 in the European session. Poor US data, particularly the Chicago PMI, led a sharp reversal in the NY shift with prices plunging back down to $97.86 before closing out the session at $98.48. Last night saw the weekly API release which showed a 2.07mmbl build in crude inventories for the latest reporting week which was roughly in line with analysts expectations of a 2.5-3 mmbl build. Trader’s will however be focussed on the more definitive data from the EIA today at 1530GMT. Asian markets overnight have seen a gentle move higher to $98.81 before settling around $98.75 into the European open. Today’s support is seen at $97.86 and $97.42 with resistance up at $99.17 and $99.54
EasyForexNews Research Team