Crude Oil Movement
Crude Oil prices advanced 0.40% against the USD for the 24 hour period ending 23:00GMT, closing at 93.97, amid unusually cold weather in the US, which is expected to increase the demand for fuel in the world’s largest market for energy. Prices were also supported after the Commerce Department indicated that the US trade deficit narrowed to $34.25 billion in November from a revised deficit of $39.33 billion in the previous month. Elsewhere, concerns that the Libyan output is still far away from normal levels boosted prices as well.
In an important development, the top Republican on the Senate Energy Committee, Senator Lisa Murkowski of Alaska advocated a move to end a 39-year ban on exports of US crude oil.
In the Asian session, at GMT0400, Crude Oil is trading at 93.89, 0.09% lower from yesterday’s close. The American Petroleum Institute (API) late yesterday reported a more-than-expected a 7.3 million-barrel decline in crude supplies for the week ended Jan. 3.
Crude oil is expected to find support at 93.42, and a fall through could take it to the next support level of 92.95. Crude oil is expected to find its first resistance at 94.29, and a rise through could take it to the next resistance level of 94.69.
Crude oil is showing convergence with its 20 Hr and 50 Hr moving averages.
