Crude Oil Movement
Crude Oil prices declined 0.72% against the USD for the 24 hour period ending 23:00GMT, closing at 101.61, as a US government shutdown dimmed the demand outlook of the commodity. Negative sentiment was also fuelled after the American Petroleum Institute (API) reported that the US crude stockpiles climbed by 4.55 million barrels during the week ended September 27, 2013. However the crude oil prices found some support after a report revealed that the US ISM manufacturing PMI registered a reading of 56.2 in September, more than analysts’ expectation of 55.0 and following a reading of 55.7 seen in the previous month.
In the Asian session, at GMT0300, Crude Oil is trading at 101.60, tad lower from yesterday’s close.
Crude oil is expected to find support at 100.91, and a fall through could take it to the next support level of 100.23. Crude oil is expected to find its first resistance at 102.43, and a rise through could take it to the next resistance level of 103.27.
Investors await the Energy Information Administration’s report on the US crude supplies, scheduled to release later today, which analysts’ expects to show that the crude supplies in the US gained 2.5 million during the previous week.
Crude oil is showing convergence with its 20 Hr and 50 Hr moving averages.
