Investing.com - Nymex crude prices continued to rise during
Asian trading hours on Wednesday after hitting four-month highs
soft U.S. data, a winter storm and supply concerns in the Middle
On the New York Mercantile Exchange, West Texas Intermediate
crude for delivery in April traded at $102.45 a barrel during Asian
trading, up 0.34%.
On Tuesday, the New York-traded oil futures hit a session low of
$102.27 a barrel and a high of $102.66 a barrel, before settling at
$102.10 a barrel.
Nymex oil futures were likely to find support at $100.31 a
barrel, the earlier low, and resistance at $102.95 a barrel, the
high from Oct. 16.
Updated weather forecasting models indicated that a strong
winter storm was set to sweep over the northeastern U.S. on Tuesday
and bring strong winds and fresh snowfall.
Frigid weather reports sent crude prices rising on sentiments
demand for heating oil will climb as temperatures fall across the
heavily-populated northeastern U.S.
Soft data out of the U.S. sent prices rising as well due to the
monetary implications they may bring.
The dollar weakened after the Federal Reserve Bank of New York
said that its general business conditions index came in at 4.48 for
February, down from a 20-month high of 12.51 in January. Analysts
had expected the index to decline to 9.00.
The new orders index fell to zero from a two-year high of 11
The numbers were the latest in a series of soft U.S. economic
indicators that have prompted many investors to wonder whether the
Federal Reserve will slow the pace of reductions to its
asset-buying stimulus program.
The Fed is currently buying $65 billion in bonds a month to
suppress interest rates to spur recovery, which weakens the dollar
as a side effect.
A weaker greenback makes oil an attractive commodity on
Supply concerns out of the Middle East pushed up prices as
Reports that protests in Libya have disrupted oil operations
bolstered prices as did news that South Sudanese rebels seized
control of an oil-producing region in the country.
Ongoing fears Iran's nuclear talks may hit snags also bolstered
Elsewhere, on the ICE Futures Exchange in London, Brent oil
futures for April delivery were up 0.81% and trading at $110.60 a
barrel, while the spread between the Brent and U.S. crude contracts
stood at $8.15 a barrel.
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