Nymex WTI crude prices are heading back up towards the $100 a barrel level this morning, with the March crude consolidating strong gains seen yesterday in NY, following the resumption of some risk appetite in equities and the EUR/USD on optimism of closure over the lingering Greek debt deal. The move reduced the Brent crude premium over US oil from over $20 in Europe to around $17 at last night’s close. This morning has seen WTI consolidate gains from lows of $95.84 to $99.13 yesterday, with the contract currently trading around $99.00 ahead of this morning’s European open. Last night’s API report showed a “bullish” 4.53 mmbl draw in inventories for the latest reporting week, but traders remain very sceptical of the report which points to weak imports rather than strong demand. All will no doubt be revealed in the more definitive EIA report this afternoon (1530GMT). (Analysts are looking for a build of around 2.5mmbl this week). Today’s support is seen at $97.79 and $97.27 with resistance up at $99.55 and $100.68.
EasyForexNews Research Team