Crude Oil Movement
Crude Oil prices advanced 0.26% against the USD for the 24 hour period ending 23:00GMT, closing at 89.93, as rising supply concerns due to escalating tensions in the Middle East added to sluggish outlook for global oil demand.
Turkish President, Abdullah Gul, yesterday stated that that the worst case scenarios between his country and Syria are now playing out, fuelling concerns that the 18-month old conflict in Syria may spread to other countries in the region.
A poor outlook for the global economy also kept a lid on oil price gains. The International Monetary Fund cut its global growth forecast for the second time since April and warned the US and European policymakers that failure to fix their economic crisis would prolong the slump.
Oil prices were also buoyed a day after the Venezuelan President, Hugo Chavez won a third mandate, thereby raising concerns that oil production would slide following Chavez’s populist policies.
In the Asian session, at GMT0300, Crude Oil is trading at 90.10, 0.19% higher from yesterday’s close.
Crude oil is expected to find support at 88.76, and a fall through could take it to the next support level of 87.43. Crude oil is expected to find its first resistance at 90.88, and a rise through could take it to the next resistance level of 91.67.
Crude oil is trading above its 20 Hr and 50 Hr moving averages.
