Crude Oil: Oil rose on Iran tension, trading lower this morning

Crude Oil Movement

Oil prices advanced 4.84% against the USD for the 24 hour period ending 23:00GMT, closing at 87.74, on rising Middle East concerns and amid speculation that global central banks would give greater consideration to stimulate the economy via easing measures.

Oil prices rose after Iran stated that it had successfully tested missiles capable of hitting Israel in response to threats of military action against the Islamic Republic over its nuclear ambitions. Meanwhile, late yesterday, American Petroleum Institute (API) reported that the US crude oil stocks fell 3 million barrels for the week ended June 29. Gasoline stocks declined 1.4 million barrels, while distillate stocks edged down 1.1 million barrels.

In the Asian session, at GMT0300, Crude Oil is trading at 87.43, 0.35% lower from yesterday’s close.

Crude oil is expected to find support at 84.73, and a fall through could take it to the next support level of 82.04. Crude oil is expected to find its first resistance at 89.08, and a rise through could take it to the next resistance level of 90.74.

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