Anxiety Cyprus Tap Oil Potential

Learn Commodity : Anxiety Cyprus Tap Oil Potential,  U.S. crude futures traded in negative territory throughout the Asian session on Thursday due to uncertainty euro zone, although Chinese manufacturing data released positive.

Observed so far U.S. crude futures down -0.67% at $ 92.86 a barrel, after reaching $ 93.53 intraday highs and lows daily at $ 92.84 per barrel.

Index HSBC China manufacturing PMI versions that measure China's manufacturing activity rose to 51.7 reported in the month of March, compared to the previous 50.4 in February. Readings above 50 still indicates expansion in manufacturing activity. China as the world's second largest consumer of oil followed by an increase in manufacturing activity should still bullish impact on oil demand and oil prices.

Most analysts see the fundamental outlook for oil this year is still quite bullish, where attenuation due Cyprus factors predicted only temporary.

Technically, intraday bias remains bearish oil as indicated by the slow stochastic on Daily charts are reaching overbought levels, however, still required penetration consistently below 92.50 area to trigger further bearish pressure testing the next support level at around 91.70. On the upside, resistance levels near 93.40 area looked at, turned back above that area could bring price to neutral zone as direction becomes less clear in the short term.