Crude Oil Movement
Crude Oil prices advanced 0.63% against the USD for the 24 hour period ending 23:00GMT, closing at 97.99, as the US Federal Reserve’s pledge to stick to its bond-buying stimulus plan and upbeat Euro-zone data fuelled optimism about future oil demand.
However, a surprise contraction in the US economic growth and a surge in weekly crude oil stocks in the US, kept a lid on gains.
Yesterday, the US Energy Information Administration reported that for the week ended January 25, crude supplies rose 5.9 million barrels. Gasoline supplies retreated by 1 million barrels, while distillate stocks declined by 2.3 million barrels.
In the Asian session, at GMT0400, Crude Oil is trading at 97.90, marginally lower from yesterday’s close.
Crude Oil is expected to find support at 97.41, and a fall through could take it to the next support level of 96.93. Crude oil is expected to find its first resistance at 98.31, and a rise through could take it to the next resistance level of 98.73.
Crude Oil is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
