Crude Oil Movement
Crude Oil prices declined 1.09% against the USD for the 24 hour period ending 23:00GMT, closing at 107.30, as concerns over the supply outlook of the commodity from the Middle East region eased after the Syrian regime accepted Russian proposal to handover its chemical weapons to international control and after the US stated that it is ready for a diplomatic resolution on Syrian conflict.
However, losses were kept checked after the American Petroleum Institute reported that US crude inventories dropped 2.93 million barrels during the week ended September 6, 2013.
In the Asian session, at GMT0300, Crude Oil is trading at 106.9, 0.37% lower from yesterday’s close.
Earlier today, the Organization of Petroleum Exporting Countries (OPEC), in its market report, stated that the global oil market is “well-supplied” and indicated that it will need to provide an average 29.6 million barrels a day next year, reducing its estimate “slightly” from last month.
Crude oil is expected to find support at 105.89, and a fall through could take it to the next support level of 104.89. Crude oil is expected to find its first resistance at 108.40, and a rise through could take it to the next resistance level of 109.91.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
