EIA inventory data showed a tremendous drawdown of 7.5 million barrels bringing further support to a short cover that was sparked by delays in Libyan oil exports (who would have thought?). The market had traded below 100 but soon after better-than-expected GDP data out of China helped stop the bleeding which were followed by industrial production increases domestically.
Now with news of sanctions being imposed on Russia over Ukraine, the market is finding further support as volatility increases. Going into the weekend, trades can now look to use the 101.60-101.80 level as support in a buy the first test mentality; a close below here though will signal a failure. The market is likely heading to test resistance at 103.19. A large lineup of U.S. data points this morning will be keep in signaling steady demand.
Resistance –102.40-102.47**, 103.19**, 103.60-103.89**, 104.23**,
Support –101.60-101.80***, 101.19*, 100.73-100.93**, 100.49*, 100.04*, 99.70***, 98.62**, 97.47