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 Market Analyst, Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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