Beleaguered oil bulls finally had something to cheer about overnight, as crude jumped over 2 % following a lower than expected EIA Crude Inventory number. The build of 867,000 against 2 million barrels expected, combined with disrupted supply from Libya saw buyers dip their toes into the market with vigour for the first time in two weeks.
Both Brent and WTI spot have opened in Asia at the top of their New York ranges. Although we may see some early short term profit taking the move are quite constructive technically.
Brent spot has resistance just above at 52.50 and at its 100-day moving average at 52.75 with support at 51.20. A daily close above the former opening up the 54.50 breakdown level.
WTI spot opens at 49.10 but still, needs to clear 49.50 before we can start thinking about the 50.00 mark and the 100-day moving average at 50.60. Support rests at 47.95, the overnight low.
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