Crude Oil Movement
Oil prices declined 2.00% against the USD for the 24 hour period ending 23:00GMT, closing at 104.98, amid easing political tensions in the Middle East, after the European Union offered to restart negotiations with Iran over its nuclear program and after Energy Information Administration (EIA) cuts global oil demand forecasts for 2012 and 2013.
The US Energy Information Administration (EIA) raised its oil price projection for 2012 and 2013, and warned prices could end up higher than it forecasts if current supply disruptions in non-OPEC countries intensify. The agency further lowered its forecast of world oil demand growth in its March Short-Term Energy Outlook.
Separately, the American Petroleum Institute reported that the US crude oil inventories rose 4.6 million barrels for the week ended 2nd February. Gasoline stocks fell 2.3 million barrels, while distillate inventories rose 924,000 barrels.
In the Asian session, at GMT0400, Crude Oil is trading at 105.12, 0.13% higher from yesterday’s close, after China stated that it would boost energy imports in 2012.
China’s trade ministry stated that the country plans to boost energy imports in 2012, and would keep policies to ensure stable export growth, which it expects to improve in the second half of the year.
Crude oil is expected to find support at 104.10, and a fall through could take it to the next support level of 103.07. Crude oil is expected to find its first resistance at 106.56, and a rise through could take it to the next resistance level of 107.99.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
