Oil prices declined 5.60% against the USD for the 24 hour period ending 23:00GMT, closing at 81.54, amid demand concerns, as Euro-zone contagion fears continued to linger.
Additionally, oil prices declined after Saudi Arabia, Oil Minister, Ali al-Naimi, stated that Organization of Petroleum Exporting Countries need to increase their output target in second half of 2012. Oil prices also came under pressure, as risk of supply disruption from Iran eased after the US issued more exemptions from sanctions for buying Iran’s crude.
In the Asian session, at GMT0300, Crude Oil is trading at 81.8, 0.32% higher from yesterday’s close.
Crude oil is expected to find support at 79.82, and a fall through could take it to the next support level of 77.85. Crude oil is expected to find its first resistance at 85.03, and a rise through could take it to the next resistance level of 88.27.
Investors await the oil inventory reports later today and tomorrow to offer guidance to oil prices.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.