Crude Oil Movement
Oil prices declined 1.16% against the USD for the 24 hour period ending 23:00GMT, closing at 100.97, amid renewed concerns over the economic slowdown in European economies and following a surge in US oil stock piles.
Yesterday, the Energy Information Administration reported that for the week ended January 6, crude oil supplies advanced by 5 million barrels. Gasoline inventories edged up by 3.6 million barrels and distillate stocks, which include heating oil, rose 4 million barrels.
Meanwhile, US Treasury Secretary, Timothy Geithner recommended top Chinese officials to significantly reduce imports of Iranian crude, following a new US sanctions policy focused on nations that continue trading with Iran.
In the Asian session, at GMT0400, Crude Oil is trading at 101.25, 0.28% higher from yesterday’s close.
Crude oil is expected to find support at 100.38, and a fall through could take it to the next support level of 99.51. Crude oil is expected to find its first resistance at 102.29, and a rise through could take it to the next resistance level of 103.33.
The pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
