Nymex WTI crude prices have started the week with a slightly softer tone this morning in Asia after highs in NY on Friday of $98.03 following a much stronger than expected US NFP release which buoyed equity markets. The March contract has eased in Asia to $97.08 after closing in NY at $97.84, and is currently trading around Y97.30 at the time of writing. Latest CFTC data has failed to point to any significant trend in positioning, but the contract continues to be led by ongoing geopolitical concerns over Iran and heavy supply over demand as indicated in last week’s large build in Crude inventories at the Cushing Oklahoma hub. Ice Brent crude continues to widen its premium over its WTI counterpart with the spread now in excess of $17 as traders note that any excess supply is being shipped to Asia rather than Europe leaving the European market caught short. For today support for the March WTI contract lies at $96.73 and $95.61 with resistance up at $98.95 and $100.07.
EasyForexNews Research Team