Crude Oil Movement
Crude Oil prices declined 2.84% against the USD for the 24 hour period ending 23:00GMT, closing at 86.69, as investors dumped the commodity due to global growth fears. Oil’s losses accelerated after stocks on Wall Street opened with heavy losses yesterday, pressured by disappointing corporate earnings results.
Late yesterday, the American Petroleum Institute reported that crude-oil supplies rose 313,000 barrels for the week ended October 19. Distillate stocks fell by 890,000 barrels, while gasoline inventories increased 181,000 barrels.
In the Asian session, at GMT0300, Crude Oil is trading at 87.07, 0.44% higher from yesterday’s close, after economic data from China suggested a strengthening recovery in the world’s second largest oil consumer.
Crude oil is expected to find support at 85.49, and a fall through could take it to the next support level of 83.90. Crude oil is expected to find its first resistance at 88.86, and a rise through could take it to the next resistance level of 90.64.
Crude oil is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
