U.S. crude oil futures rose more than 3 percent yesterday, jumping above $71 a barrel as attacks on Nigerian oil facilities and optimism about economic recovery that helped boost equities lifted crude oil futures. RBOB gasoline and heating oil futures also surged as the front-month July contracts approach expiration on Tuesday.
News that U.S. oil demand in April was higher than previously estimated, also supported the oil prices .According to the U.S. Energy Information Administration, U.S. oil demand in April was revised, up 216,000 barrels per day more than previously estimated, though it was still down 1.297 million bpd from a year earlier.
Nigeria's main militant group said its fighters had attacked an oil facility belonging to Royal Dutch Shell in the Niger Delta on Monday, in the face of an amnesty offer from President Umaru Yar'Adua.
But at the same time, The International Energy Agency cut sharply its medium-term forecast for oil demand because of economic recession, but said the threat of a supply crunch had only receded, not gone away.
Weekly outlook (DWTI: July)
Supports are $ 67.10, $65.30 and $64. Resistances are $72.50, $73.80 and $75.
DWTI (July) traded in the range $71.85-68.50 and closed at $71.49
TECHNICAL OUTLOOK (Intra-day)
DGCX Crude (July) - Bullish above $ 71.50Bearish below $70.80
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