Crude Oil Movement
Crude Oil prices declined 0.46% against the USD for the 24 hour period ending 23:00GMT, closing at 97.54, as risk appetite decreased among investors after disappointing weekly jobless claims in the US.
In the Asian session, at GMT0400, Crude Oil is trading at 97.50, marginally lower from yesterday’s close, as disappointing employment data in the US and Japan indicated that their economic recoveries may be faltering. Moreover, disappointing Chinese manufacturing data further pressured oil prices.
Data released this morning indicated that the official purchasing managers index (PMI) in China unexpectedly slipped to a reading of 50.4 in January, against the expectation for reading of 50.9 and compared to a reading of 50.6 recorded in the previous month. However, the HSBC manufacturing PMI climbed to a reading of 52.3 in January, and compared to a reading of 51.5 posted last month.
Crude Oil is expected to find support at 96.89, and a fall through could take it to the next support level of 96.28. Crude oil is expected to find its first resistance at 98.06, and a rise through could take it to the next resistance level of 98.62.
Crude Oil is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
