Amidst the news that the U.S. economy is improving and record new credit in China bolstered the demand outlook for the world’s two biggest oil consumers, West Texas Intermediate or WTI crude rose for the first time in three days. Also, there was an upward movement in the futures which climbed as much as 0.8 percent in New York.
Nonetheless, WTI for March delivery increased as much as 83 cents to $101.13 a barrel in electronic trading on the New York Mercantile Exchange. It is above the $100 mark after a lot of time and according to some investors, it is an indication of better prospects in the coming time as it may go up further.
Market observers believe that Nymex oil futures were likely to find support at USD99.41 a barrel which was Thursday’s low. Also, it may get resistance at USD100.65 a barrel which in fact was the Thursday’s high. Nonetheless, as the Federal Reserve has already reported that U.S. industrial production fell 0.3% in January, it might have some impact on the crude prices.
Earlier, ForexMinute had reported that the year 2013 which saw steep decline in the crude oil prices due to heavy stockpiling could be solved as powerful winter storm that dumped snow across the eastern U.S. hiked demand for heating oil. It might be helping the crude prices go up; however, as this won’t be lasting for long, the stability will definitely be an issue.
There were also warnings from IEA which warned the U.S. to ease restrictions on the crude exports to help the crude prices go up. However, there is no indication that the U.S. government will take any decision on easing up the restrictions.
Better Banking Data from China Helping Crude Prices
It traded at $100.72 at 11:39 a.m. London time. Also, the volume of all futures traded was about 7 percent above the 100-day average and prices have advanced 2.4 percent this year so far. The local reports say that floor trading will be closed today for the U.S. Presidents Day holiday; however, electronic transactions will be booked tomorrow.
On the other hand, Brent for April settlement slipped 23 cents to $108.85 a barrel on the London-based ICE Futures Europe exchange. According to some market observers as more banks lending in China is good news, signs of improvement in the U.S. are psychologically helping the market and new credit in China.
To contact the reporter of this story: Jonathan Millet at email@example.com