Crude Oil Movement
Crude Oil prices declined 1.35% against the USD for the 24 hour period ending 23:00GMT, closing at 98.13, after the Energy Information Administration (EIA) reported a 6.2 million barrels jump in the US crude stockpiles for the week ended 7 March. Analysts had expected a 2.3 million barrels rise in the US crude supplies, last week. The US Energy Department also announced the sale of 5 million barrels of sour crude from its strategic petroleum reserve in Louisiana and Texas, to test the system’s capabilities in the event of a disruption..
Separately, the Organization of Petroleum Exporting Countries (OPEC) reported that that total crude production in its member nations rose by 258,600 barrels a day in the previous month to 30.1 million, the highest level since August. The OPEC also projected a rise in the global oil demand by 1.14 million barrels a day in 2014 to an average of 91.14 million barrels a day.
However, the losses in the crude prices were kept in check as Libya’s lawmakers’ decision to oust Ali Zaidan as the nation’s Prime Minister fuelled concerns on the political stability of the nation.
In the Asian session, at GMT0400, Crude Oil is trading at 98.26, 0.13% higher from yesterday’s close.
Crude oil is expected to find support at 97.36, and a fall through could take it to the next support level of 96.45. Crude oil is expected to find its first resistance at 99.36, and a rise through could take it to the next resistance level of 100.45.
Crude oil is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
