Crude Oil Movement
Oil prices declined 0.38% against the USD for the 24 hour period ending 23:00GMT, closing at 84.91, as Federal Open Market Committee meeting minutes revealed that Federal Reserve officials were concerned that economic growth would not pick up till end of 2011, raising doubts about the prospects of oil demand.
Oil prices also came under pressure, after the International Energy Agency’s (IEA) reduced forecast for oil demand. The IEA reduced its 2012 demand estimates to 90.5 million barrels a day and forecasted the world oil consumption in 2012 to expand by 1.25 million barrels per day, 160,000 barrels lower than previous estimates.
Late Wednesday, the American Petroleum Institute reported that the crude oil inventories declined 3.80 million barrels for the week ended 7th October2011. Gasoline stockpiles fell 1.20 million barrels, while stockpiles of distillates declined 3.10 million barrels.
In the Asian session, at GMT0300, Crude oil is trading at 84.83, 0.09% lower from yesterday’s close.
Crude oil is expected to find support at 84.12, and a fall through could take it to the next support level of 83.40. Crude oil is expected to find its first resistance at 86.07, and a rise through could take it to the next resistance level of 87.30.
The pair is trading below its 20 Hr and 50 Hr moving averages.
