Crude Oil Movement
Oil prices advanced 0.77% against the USD for the 24 hour period ending 23:00GMT, closing at USD 87.59, after Egypt’s President, Hosni Mubarak stated that he would transfer the power to his Vice President, but would not step down. The speech sparked more worries that Egypt’s unrest would spread across the Middle East and disrupt oil supply movement pushing oil prices higher.
The International Energy Agency reported that the daily demand for oil would grow by 1.5 million barrels per day to 89.3 million barrels per day. Moreover, OPEC is witnessing rising worldwide demand for oil, and forecasts a rise of 1.4 million barrels per day in 2011, averaging 87.7 million barrels per day.
At GMT 0400, Oil is trading at USD 87.41 per barrel in the Asian session, 0.21% lower from 23:00GMT.
The pair has its first resistance at 87.74, followed by the next resistance at 88.64. On the other side, the first support is at 86.15, with the subsequent support at 85.46.
The pair is trading above its both 20 Hr and 50 Hr moving averages.
