Crude Oil Movement
Crude Oil prices declined 2.27% against the USD for the 24 hour period ending 23:00GMT, closing at 92.89, after the Organization of the Petroleum Exporting Countries (OECD) lowered its global growth forecast and as the International Monetary Fund (IMF) reduced its growth estimate for China, the world’s second largest oil consumer.
The OECD predicted a global growth rate of 1.9% in 2013, lower than the earlier estimate of 2.0%. Moreover, the IMF lowered its growth estimate for the Chinese economy in 2013 and 2014 to 7.75%, down from a previous estimate of 8% and 8.2% respectively.
The OECD also cautioned that when the US Federal Reserve and others start tapering their monetary-easing programs, that will likely cause spikes in government-bond yields and put growth in the global economy at risk.
Adding to the pressure, the American Petroleum Institute reported that, in the week ended 24th May 2013, crude oil inventories advanced 4.4 million barrels, against the expected 1.5 million-barrel decline. Gasoline inventories rose 1.9 million barrels and distillate stockpiles climbed by 3.1 million barrels.
In the Asian session, at GMT0300, Crude Oil is trading at 93.15, 0.28% higher from yesterday’s close.
Crude oil is expected to find support at 92.17, and a fall through could take it to the next support level of 91.20. Crude oil is expected to find its first resistance at 94.67, and a rise through could take it to the next resistance level of 96.20.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
