Oil prices declined 2.10% against the USD for the 24 hour period ending 23:00GMT, closing at 87.80.
Late yesterday, the American Petroleum Institute (API) reported that the US crude oil inventories declined 11.6 million barrels in the week ended July 27. Gasoline inventories declined 540,000 barrels, while distillates stockpiles fell 1.3 million barrels.
In the Asian session, at GMT0300, Crude Oil is trading at 87.96, 0.18% higher from yesterday’s close, drawing support from tension between the West and Iran over the Islamic republic’s nuclear ambitions and the escalating conflict in Syria.
Crude oil is expected to find support at 86.75, and a fall through could take it to the next support level of 85.53. Crude oil is expected to find its first resistance at 89.74, and a rise through could take it to the next resistance level of 91.51.
Crude oil is trading below its 20 Hr and 50 Hr moving average.