Crude Oil Movement
Crude Oil prices advanced 0.60% against the USD for the 24 hour period ending 23:00GMT, closing at 96.51, as investor sentiment was boosted after US orders for manufactured goods rose more-than-expected in December and as the OPEC Secretary General, Abdalla El-Badri stated that oil prices are unlikely to drop this year. He stated that, “At present the market is well-balanced. Looking ahead for 2013, the market is expected to remain well-supplied to meet expected demand growth”.
Oil prices also remained supported by escalating tensions in the Middle East. Over the weekend, Egypt deployed troops to locations near the Suez Canal, a major thoroughfare for oil shipments out of the Middle East. Meanwhile, regional tensions also prompted Libya, a member of the Organization of Petroleum Exporting Countries, to increase security at some of its energy facilities.
In the Asian session, at GMT0400, Crude Oil is trading at 96.62, 0.11% higher from yesterday’s close.
Investors await the US oil inventory data due later today and tomorrow to offer further guidance on oil prices.
Crude Oil is expected to find support at 95.79, and a fall through could take it to the next support level of 94.96. Crude oil is expected to find its first resistance at 97.13, and a rise through could take it to the next resistance level of 97.64.
Crude Oil is trading above its 20 Hr and 50 Hr moving averages.
