Oil fell for the third time in four days after Iran agreed to resume talks on its nuclear program and economic reports in the U.S. and China raised concern about fuel demand.
Futures slid as much as 1.4 percent as trading resumed after the Easter holiday weekend. International negotiations with Iran’s government are scheduled to start this week over its nuclear program. China said inflation in March accelerated more than forecast, reducing the Chinese government’s leeway to boost the economy. The U.S. created 120,000 jobs in March, fewer than forecast and the smallest increase in five months, an April 6 report showed.
Oil for May delivery declined as much as $1.44 to $101.87 a barrel in electronic trading on the New York Mercantile Exchange and was at $102.13 at 9:10 a.m. London time.
The contract gained 1.8 percent to $103.31 on April 5, the latest settlement. Prices have gained 3.3 percent this year.
Brent crude for May settlement slid 89 cents to $122.54 a barrel on the London-based ICE Futures Europe exchange. The premium of the European benchmark to New York futures was at $20.41. Markets were closed in New York and London on April 6 for public holidays.
Technical Analysis for WTI Crude indicates that the first support on the downside is located at $ 99.50 which is the rising support trend line and also 61.8% Fib. Retracement from 16th Dec 2011 low to the March 2012 high. Subsequent support is located at $ 95.60-$96.60 price range which is the Feb 2012 low and 200 Day SMA. Alternatively the first Resistance on the upside is located at $ 104.10 which is a 50 Day SMA followed by $ 108.50.
