Crude Oil Movement
On Friday, Crude Oil prices declined 0.14% against the USD for the period ending 21:00GMT, closing at 106.80, as the International Energy Agency (IEA), in its monthly oil market report, downplayed concerns arising to a possible loss of oil exports from Iraq amid ongoing unrest in the nation. The agency also projected the need for the OPEC to produce additional 1.0 million barrels per day of oil in the second half of 2014 to meet global market demand. However, earlier during the day, crude prices gained ground as possibility of a civil war in Iraq, the second largest producer of oil in the OPEC, strengthened after the highest religious authority for Shi’ites urged followers to fight the Sunni militants advancing south toward Baghdad. Crude prices also advanced after a report from Libya showed that oil production in the nation fell by 35,000 barrels a day to 180,000 in May, the lowest level since September 2011.
In the Asian session, at GMT0300, Crude Oil is trading at 107.33, 0.50% higher from Friday’s close.
Crude oil is expected to find support at 106.61, and a fall through could take it to the next support level of 105.88. Crude oil is expected to find its first resistance at 107.82, and a rise through could take it to the next resistance level of 108.30.
Crude oil is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
