Crude Oil Movement
Crude Oil prices declined 0.95% against the USD for the 24 hour period ending 23:00GMT, closing at 43.67, on the back of massive build up in US crude oil stocks.
The American Petroleum Institute (API) reported that US crude oil inventories increased by 6.3 million barrels in the week ended 06 November to 486.1 million barrels. Investors had expected it to increase by 1.0 million barrels.
Separately, the International Energy Agency (IEA) reported that oil was unlikely to return to $80 a barrel by the end of the decade, in spite of a reduction in global investments. It further mentioned that investments are expected to decline more than 20% this year and the trend is likely to continue till 2016.
In the Asian session, at GMT0400, the pair is trading at 43.77, with the oil trading 0.23% higher from yesterday’s close.
The pair is expected to find support at 43.29, and a fall through could take it to the next support level of 42.82. The pair is expected to find its first resistance at 44.50, and a rise through could take it to the next resistance level of 45.24.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
