The recent bullish trend for crude oil, appears to be running into a stubborn area of price resistance on the daily chart in the $104.50 per barrel area, the same level which saw the commodity sell of sharply back in early March.
Brent crude oil (BNO, quote) ticked up as tension in Ukraine grew. The commodity traded at $107.50 at 6:20 GMT after reports that pro-Russian groups had seized government buildings in several eastern Ukrainian cities.
Brent crude oil fell below $106 to start the week as the Libyan government neared a deal with rebels to reopen several of its largest oilfields. The commodity traded at $105.83 at 6:15 GMT on Monday morning as investors braced for an influx of supply.
U.S. futures as well as Europe’s markets remain flat this morning ahead the 2:00 pm EDT Federal Open Market Committee (FOMC) policy statement and Chairwoman Janet Yellen’s first news conference will follow at 2:30 pm EDT.
Last week was a volatile one for crude oil futures, with the April contract closing the week at $102.58 a barrel having touched $105 per barrel at the start of the week.
The United States reports 139,000 private-sector jobs in February.
The first FOMC meeting this week is an historic one for many reasons. First it is the last time Ben Bernanke will chair the meeting. Second, for the first time in the FED’s history the Chair will be held by a woman, and third with several new members the voting pattern will be scrutinised very closely by the markets.
The warning flags of potential short term weakness have been flying for some time on the Dow Jones cash index, and the associated derivative E-mini YM futures contract.
Brent crude oil (BNO,quote) gained momentum on Wednesday as growth in industrialized countries became more likely. The commodity traded at $107.10 at 6:30 GMT on Wednesday morning.
Whilst as traders and people, we all tend to make New Year resolutions. The market however seems set to continue in the same vein as in 2013, with the primary focus remaining the constant debate of tapering, and as I have said before, what I call ‘tweaking’.
