Crude oil futures prices soared after improving economic data, especially from China. However, Europe still can hit a bullish oil fundamentals.
Technically, crude oil has skyrocketed after breaking above the downtrend trendline that began in May.
Observed so far in oil prices for December contracts, monitored strengthened 3:51% to as low as $ 94.44 per barrel.
Positive catalyst that sustains among others:
* China PMI Report on 51.1 during October compared to the previous level of 49.9. The report also indicates the country’s economic expansion, and is the first increase since March so that sustains overall investor sentiment.
* China’s copper imports touched the highest point of a 16-month period September, investors often use imported copper indicator to see China’s economic strength.
* In the U.S., a solid corporate earnings reports indicate economic recovery, of the 142 companies tracked component of the S & P 68% of them managed to exceed expectations.
Meanwhile, from the supply-demand:
* Barclays reported that U.S. stockpiles of crude oil has dropped about 1 million barrels per day and current inventory levels are still below the average for 5 years. This decrease is also the first time in 3 years when inventory falls below the average 5 year.
* Production of Libya that has not recovered fully, and so far only produced for domestic consumption needs.
Technically speaking, level 90 as an important resistance has now become translucent support followed by $ 86 as further support.
On the upside, resistance is in the area nearest $ 96 and $ 100, strong resistance can be expected to exist in the area of ??$ 103.