Oil prices declined 3.60% against the USD for the 24 hour period ending 23:00GMT, closing at 80.90, amid demand concern from the US, its biggest consumer, after Federal Reserve cut its estimates for 2012 growth.
Oil prices also came under pressure after the Energy Information Administration (EIA) reported that the US crude oil inventories rose 2.90 million barrels to their highest level since 1990, for the week ended June 15. Gasoline inventories moved up by 900,000 barrels, while distillates stocks rose 1.2 million barrels.
In the Asian session, at GMT0300, Crude Oil is trading at 80.33, 0.70% lower from yesterday’s close, after the release of weak manufacturing purchasing managers index data from China.
Crude oil is expected to find support at 78.91, and a fall through could take it to the next support level of 77.5. Crude oil is expected to find its first resistance at 83.04, and a rise through could take it to the next resistance level of 85.76.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.