Crude Oil Movement
Oil prices declined 1.06% against the USD for the 24 hour period ending 23:00GMT, closing at 105.68, amid more-than-expected rise in the US crude oil inventories and as the US Dollar strengthened.
Early yesterday, oil rose after US President, Barack Obama, in a joint news conference with UK Prime Minister, David Cameron, stated that the room for a diplomatic solution with Iran over Tehran’s nuclear program was diminishing.
However, the gains were short-lived after the Energy Information Administration reported that crude oil inventories rose 1.75 million barrels to 347.45 million barrels in the week ended 9th March.
Further, oil fell after Saudi Arabia’s top oil official stated that his country and other oil exporters are ready to offset any shortfalls in supply, easing concern that tension with Iran would disrupt supplies.
Moreover, the International Energy Agency (IEA) stated that oil supply from non-OPEC countries would grow less-than-expected in the first quarter of 2012, leaving its global oil demand growth forecast unchanged.
In the Asian session, at GMT0400, Crude Oil is trading flat at 105.68, from yesterday’s close.
Crude oil is expected to find support at 104.86, and a fall through could take it to the next support level of 104.04. Crude oil is expected to find its first resistance at 106.76, and a rise through could take it to the next resistance level of 107.84.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
