Crude Oil Movement
Crude Oil prices dropped 1.95% against the USD for the 24 hour period ending 23:00GMT, closing at 94.83, amid market rumours that a hedge fund was forced to liquidate substantial commodity positions. Meanwhile, expectations that Saudi Arabia intends to raise production in the second quarter added increased pressure on oil prices. Additionally, oil supply concerns waned, after a Western diplomat stated that major powers are ready to make “a substantial and serious offer” to Iran during talks on its nuclear program next week.
Also, late Wednesday, the American Petroleum Institute reported that crude-oil supplies climbed by a more-than-expected 3 million barrels. Analysts had expected a 2 million-barrel rise. Gasoline inventories retreated 122,000 barrels, while distillate stockpiles declined 1.6 million barrels.
In the Asian session, at GMT0400, Crude Oil is trading at 94.44, 0.41% lower from yesterday’s close.
Crude oil is expected to find support at 93.22, and a fall through could take it to the next support level of 91.99. Crude oil is expected to find its first resistance at 96.37, and a rise through could take it to the next resistance level of 98.29.
Crude Oil is trading below its 20 Hr and 50 Hr moving averages.
