23 Jun 2016
The August contract for U.S. crude futures, the new front month contract from Wednesday, had climbed 9 cents to $49.94 a barrel by 0223 GMT. Earlier it rose to as high as $50.54, marking the first time it had risen above $50 since June 10.
Brent crude futures were up 4 cents at $50.66 a barrel, after settling down 3 cents at $50.62 on Tuesday.
Tonight, the EIA will release U.S. weekly crude oil supply data which is predicted to show a deeper draw. If realized, it could increase the price of crude oil.
It is estimated that the price of crude oil has the potential to increase with sentiment of a production decline, but the strengthening U.S. dollar should be considered ahead of the British referendum vote on the European Union on June 23.
Observe: Crude Oil Prices Rise During Asian Session, Break Through $50
The CPO price for the most active contract on the Malaysian commodities exchange closed down at the close of trading yesterday. The price of the September 2016 contract, which is the most active contract, closed down by -28 Ringgit at the position of 2,374 Ringgit per ton.
See: CPO Prices Strengthened on April 21, Triggered by Weakening Ringgit
Vibiz Reasearch Center Analysts predict that the CPO futures price will potentially increase in the next trading session due to the potential weakening of the Ringgit and the rising price of crude oil. The price movement can also be affected by the conditions of global supply and demand.
The price of the CPO futures contract for September 2016 on the Malaysian commodities exchange potentially tests the Resistance level at the position of 2,425 Ringgit and 2,475 Ringgit. Meanwhile, the Support level that will be tested if a weakness occurs is at the position of 2,325 Ringgit and 2,275 Ringgit.
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