Crude Oil: Oil prices dropped on weak US, Europe data

Crude Oil Movement

Crude Oil prices declined 1.38% against the USD for the 24 hour period ending 23:00GMT, closing at 93.14, as weak US manufacturing data, a record rise in Euro-zone’s unemployment rate and drop in Germany’s retail sales raised concerns over the future demand for crude oil. Furthermore, prices came under pressure after the American Petroleum Institute (API) reported a surge in crude stock piles. Late yesterday, the API reported that crude supplies advanced 5.2 million barrels, in the week ended April 26. Gasoline inventories dropped 2.7 million barrels and distillate stockpiles slipped by 1.1 million barrels.

In the Asian session, at GMT0300, Crude Oil is trading at 93.15, marginally higher from yesterday’s close.

Crude oil is expected to find support at 92.47, and a fall through could take it to the next support level of 91.78. Crude oil is expected to find its first resistance at 94.23, and a rise through could take it to the next resistance level of 95.30.

Crude oil is trading below its 20 Hr and 50 Hr moving averages.