Oil opens at the overnight highs in Asia

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.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Currency Analyst
Based in Singapore, Jeffrey has over 25 years experience in the financial markets, having traded currencies, options, precious metals and futures. Jeffrey started his career at Barclays Bank in New Zealand. However he has spent most of it in London and Asia.Jeffrey focuses on the Asia time zone across asset classes. A regular commentator on business news TV and Radio, he is originally from New Zealand and holds an MBA from Cass Business School, London.