Energy futures climbed higher yesterday despite worries over a possible release of oil reserves by the U.S., which is being off-set against the situation in Iran. Many investors believe that a pre- emptive strike by Israel is imminent. Futures came off three high month highs on the news that the U.Ss will dust off old plans so to speak and release these reserves although nothing firm has been agreed as of yet. Last night, Brent crude closed out the session at $116.90 up $0.65. WTI crude closed out the session at $95.60 up $1.27. Gasoil closed at $977.25 up $8.25 while UK Nat Gas closed at £55.40 down £0.07.

The Euro has risen a little from its Asian closing prices of 1.2340 and it moved to a high of 1.2365 after the release of German PPI data which although disappointing has triggered an upside move to 1.2365. We have been bouncing off the one month uptrend support level of 1.2268 and attempting to break above the 55 day moving average of 1.2395 but we have yet to hold above this level. Resistance is seen at 1.2425 and again at 1.2455. On the downside we draw support at 1.2305 and again at 1.2275.

Equities rose yesterday with the DJIA closing up 85.33 at 13250.11 while the S&P closed at 1415.51. In Europe the FTSE is trading at 5847.44 up 12.93 while the DAX is trading at 7008.43 up 12.14. The VIX is at 14.29 after rising from a low of 13.69 in the past few days. Gold is trading at 1616.80 while Silver is at 28.18.

In economic data today, we have already had German Producer Prices which came in at 0.9%. Later today we have not much including nothing more out of Europe or the UK. In the US, we have Michigan Confidence and Leading Indicators.

For Brent crude we draw first resistance at $115.00 followed by $116.00. On the downside we draw first support at $114.00 followed by $113.00.

For Gasoil we draw first resistance at $984.00 followed by $988.00. On the downside we draw first support at $977.00 followed by $972.00.

Jaime Miralles